LeMaitre Vascular has purchased Angiotech Pharmaceuticals’ Lifespan Vascular Graft manufacturing business for $2.8 million.
The Lifespan Vascular Graft is a vascular prosthesis used in the repair or replacement of diseased arteries and is currently marketed in the U.S., European Union, Japan, Canada and other markets by third-party distributors, including Edwards Lifesciences.
Under the terms of the sale, LeMaitre will acquire the rights to Angiotech’s Laguna Hills, Calif.-based factory. The Burlington, Mass.-based LeMaitre said that the purchase price is 1.8 times Angiotech’s sales to distributors during its four most recently completed fiscal quarters.
In addition, LeMaitre said that it has agreed to end the distribution of the Lifespan product by Edwards, which is scheduled to take place beginning Nov. 30.
According to LeMaitre, it will pay Edwards $74,000 in exchange for market transitions in Europe and Japan and will pay almost $500,000 for a chunk of Edwards’ inventory. Under the terms, LeMaitre will receive the Lifespan trademark from Edwards and the company intends to sell the product through its own global sales force beginning Dec. 1.
The company expects to see revenues equating to $1.7 million in 2011; however, the company said that it expects the current transaction to reduce Q4 operating incomes by almost $300,000 and reduce the operating income by almost $700,000 in 2011.