- LeMaitre Vascular have placed an order for 12,500 units of Admedus’ (AHZ) patches for the upcoming year
- In October, Admedus sold the distribution rights for its CardioCel and VascuCel patch business for up to $36 million
- CardioCel is used to repair inherited heart deformities while VascuCel is used in vessel repair, vascular reconstruction, and stitching support
- Admedus is currently up 2.22 per cent with shares trading for 9.2 cents apiece
LeMaitre Vascular have placed an order for 12,500 units of Admedus’ (AHZ) CardioCel and VascuCel patches for the year ahead.
This quantity significantly exceeds Admedus’ unit sales for these products over the previous 12 months.
On October 14, Admedus sold the distribution rights for its CardioCel and VascuCel patch business to LeMaitre for up to $36.2 million, at the time, in cash payments.
A total of $22.8 million will be paid upfront to Admedus reflecting the cash received on the completion date of $21.2 million plus the proceeds to be paid by LeMaitre on delivery of stock ordered on the completion of the transaction.
Admedus may also receive up to $11.4 million in milestone payments and just last year it received $200,000 for completion of reporting procedures by October 31.
Under the sales agreement, Admedus retained the exclusive manufacturing rights for up to three years to supply LeMaitre with the products.
This agreement ensures Admedus a 20 per cent margin over cost.
CardioCel is bio-scaffold material that is used to repair inherited heart deformities and more complex heart defects. It can also be used to reconstruct dysfunctional heart valves and valve leaflets.
The material is durable and flexible with the elasticity making it easier to handle and use. Due to its strength, it’s suitable for use in pressured environments.
Long-term studies of CardioCel have shown minimal to no calcification nine years after the implant was inserted.
It also showed strong ingrowth of normal heart tissue around the implant and blood flow both around and through the implant.
VascuCel is specified for use as a patch in vessel repair, suture line buttressing (stitches support), and peripheral vascular reconstruction.
It is bio-engineered using Admedus’ ADAP technology and has been used successfully in cardiac repairs and reconstruction for years.
Admedus is currently up 2.22 per cent with shares trading for 9.2 cents apiece at 12:22 pm AEDT.