AngioDynamics Re-Entering Embolization Market
Thursday, April 9, 2015
AngioDynamics (Nasdaq:ANGO), 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.