IRVINE, Calif., Dec. 13, 2010 /PRNewswire-FirstCall/ --
Endologix, Inc. (Nasdaq: ELGX), developer of minimally invasive
treatments for aortic disorders, announced today that it has
completed the acquisition of Nellix, Inc. Nellix has
developed a revolutionary new device for the treatment of Abdominal
Aortic Aneurysms (AAAs) that is expected to address the limitations
of existing endovascular aneurysm repair (EVAR) devices and expand
the global AAA market. Endologix announced its agreement to acquire
Nellix on October 27, 2010.
John McDermott, Endologix
President and Chief Executive Officer, said, "The talented team at
Nellix has developed a unique technology that has the potential to
become the new standard of care for abdominal aneurysm repair.
We believe that this acquisition combined with our existing
and other new products in development give Endologix the most
innovative pipeline of aortic endovascular devices in the industry.
We look forward to expanding the EVAR market and providing
physicians with more treatment options for their patients."
In conjunction with the acquisition of Nellix, Endologix
completed the previously announced private placement offering of
common stock to Essex Woodlands Health Ventures which resulted in
net proceeds to Endologix of $15.0
million. Endologix intends to use the proceeds from
the private placement to integrate the Nellix technology, to
conduct clinical studies, to begin establishing a direct sales
force in Europe, to provide
working capital and for general corporate purposes.
The private placement was made only to an accredited investor in
accordance with Section 4(2) under the Securities Act of 1933 and
the rules and regulations promulgated thereunder. The securities
sold in the private placement have not been registered under the
Securities Act of 1933 or any state securities laws and unless so
registered may not be offered or sold in the United States except pursuant to an
exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933 and
applicable state securities laws. In connection with the private
placement, Endologix has agreed to file a registration statement to
register for resale the common stock issued in the private
placement. This announcement is neither an offer to sell nor a
solicitation of an offer to buy any of the securities issued in the
private placement.
In connection with the acquisition of Nellix, Endologix
anticipates that it will issue an aggregate of 540,400 restricted
stock awards to certain employees and advisors of the surviving
corporation, which will vest in accordance with the respective
restricted stock award agreements.
About Endologix, Inc.
Endologix develops and manufactures minimally invasive
treatments for aortic disorders. Endologix's flagship product is
the Powerlink® System, which is an endovascular stent graft for the
treatment of abdominal aortic aneurysms (AAA). AAA is a weakening
of the wall of the aorta, the largest artery in the body, resulting
in a balloon-like enlargement. Once AAA develops, it continues to
enlarge and, if left untreated, becomes increasingly susceptible to
rupture. The overall patient mortality rate for ruptured AAA is
approximately 75%, making it a leading cause of death in the U.S.
Additional information can be found on Endologix's Web site at
www.endologix.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, regarding, among other things, statements relating to the
potential benefits of Endologix's acquisition of Nellix, including
expected operating synergies, the strength of Nellix's technology
and the potential for long-term growth and expanded market share.
Endologix intends such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in Section 21E of the Exchange Act and the Private Securities
Litigation Reform Act of 1995. These statements are based on the
current estimates and assumptions of Endologix's management as of
the date of this press release and are subject to risks,
uncertainties, changes in circumstances and other factors that may
cause actual results to differ materially from the forward-looking
statements made in this press release. Important factors that could
cause actual results to differ materially from forward-looking
statements include, but are not limited to, Endologix's ability to
successfully integrate Nellix's technology with its current
and future product offerings, the scope of potential use of
Nellix's technology, the ability to obtain and maintain required
U.S. Food and Drug Administration and other regulatory approvals of
Nellix's technology, the scope and validity of intellectual
property rights applicable to Nellix's technology, the ability to
build a direct sales and marketing organization in Europe, competition from other companies,
Endologix's ability to successfully market and sell its products,
plans for developing new products and entering new markets and
additional factors that may affect future results which are
detailed in Endologix's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March
3, 2010, and in Endologix's other periodic reports filed
with the Securities and Exchange Commission. Endologix undertakes
no obligation to revise or update information herein to reflect
events or circumstances in the future, even if new information
becomes available.
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COMPANY
CONTACT:
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INVESTOR
CONTACTS:
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Endologix, Inc.
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The Ruth Group
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John McDermott, CEO
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Nick Laudico (646)
536-7030
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(949) 595-7200
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Zack Kubow (646)
536-7020
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www.endologix.com
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SOURCE Endologix, Inc.