ALBANY, N.Y., Apr 09, 2015 (GLOBE NEWSWIRE via COMTEX) --
AngioDynamics ANGO, +1.27% a leading provider of innovative, minimally invasive medical devices for vascular access, surgery, peripheral vascular disease and oncology, announced today a worldwide licensing agreement with privately-held EmboMedics Inc., of Minneapolis, Minn., which develops injectable and resorbable microspheres. Embolization is the fastest growing segment in Interventional Radiology, and this newly formed strategic relationship will allow AngioDynamics to leverage the talent and knowledge of its sales team to re-enter the approximately $150 million addressable global embolic market.
"AngioDynamics previously helped to build the embolics market, and with worldwide rights to a margin accretive, truly novel technology, we are poised to emulate that success," said Joseph M. DeVivo, President and Chief Executive Officer of AngioDynamics. "We believe resorbable microspheres represent the future of embolotherapy, allowing for more options in the treatment of patients, and we are excited about the prospect of bringing this technology to our customers worldwide."
Under the terms of the agreement, AngioDynamics receives an exclusive worldwide license to market and sell, upon regulatory clearances, EmboMedics' microsphere technology. AngioDynamics will also control manufacturing of the products. AngioDynamics will make an initial $2 million equity investment in EmboMedics through the purchase of preferred stock. The Company may make an additional $9 million in equity, as well as milestone driven investments, and can execute an exclusive option to acquire EmboMedics, based on the achievement of certain milestones.
Spherical and compressible, EmboMedics' technology is designed to break down over time, resulting in reabsorption and elimination by the body. This action may lead to recanalization of the treated arteries, allowing for repeat procedures to occur through the previously embolized vessels.
"EmboMedics has focused on advancing minimally-invasive embolization with resorbable technologies, improving the patient experience by designing biodegradable materials that will no longer remain in the arteries indefinitely," said Dr. Omid Souresrafil, Chief Executive Officer and co-founder of EmboMedics. "We are excited to partner with AngioDynamics, leveraging our technology with its world class sales force and distribution network as we look to introduce our product to the global marketplace."
EmboMedics expects to submit for U.S. FDA 510(k) clearance to market the device as a resorbable microsphere for the embolization of hypervascular tumors by January 2016. Founded in 2012, EmboMedics obtained exclusive commercialization rights from The University of Minnesota, which developed the microsphere technology. This deal is not expected to have a material impact on fiscal year 2015 financial results.
AngioDynamics Inc. is a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, surgery, peripheral vascular disease and oncology. AngioDynamics' diverse product lines include market-leading ablation systems, fluid management systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products and venous products. More information is available at www.AngioDynamics.com.
AngioDynamics and the AngioDynamics logo are trademarks and/or registered trademarks of AngioDynamics Inc., an affiliate or a subsidiary. EmboMedics is a trademark and/or registered trademark of EmboMedics Inc.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics' expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as "expects," "reaffirms," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "optimistic," or variations of such words and similar expressions, are forward-looking statements. These forward looking statements are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ from AngioDynamics' expectations. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the ability of AngioDynamics to develop its existing and new products, technological advances and patents attained by competitors, future actions by the FDA or other regulatory agencies, domestic and foreign health care reforms and government regulations, results of pending or future clinical trials, overall economic conditions, the results of on-going litigation, the effects of economic, credit and capital market conditions, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from group purchasing organizations and competition, the ability of AngioDynamics to integrate purchased businesses, as well as the risk factors listed from time to time in AngioDynamics' SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended May 31, 2014; its Annual Report on Form 10-K/A for the fiscal year ended May 31, 2014; its quarterly reports on form 10-Q for the fiscal quarters ended August 31, 2014, and November 30, 2014; and the current report on Form 8-K, filed with the SEC on March 2, 2015. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.
EmboMedics microsphere products have not been reviewed by the U.S. Food and Drug Administration or any other international regulatory body at this time; as such they are currently not available for sale by AngioDynamics.
CONTACT: Company Contact: AngioDynamics, Inc. Mark Frost, CFO (800) 772-6446 x1981 [email protected] Investor Relations Contacts: EVC Group, Inc. Chris Dailey/Robert Jones (646) 445-4801; (646) 201-5447 [email protected]; [email protected] Media Contact: EVC Group, Inc. Dave Schemelia (646) 201-5431 [email protected]
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