Accelerates Endologix's Transition to Direct
Sales in Europe
Supports LeMaitre's Strategy to Focus on Core
Vascular Products
Endologix, Inc. (Nasdaq:ELGX), developer and marketer of minimally
invasive treatments for aortic disorders, and LeMaitre Vascular,
Inc. (Nasdaq:LMAT), provider of peripheral vascular devices and
implants, announced today that the companies have entered into an
early termination agreement for LeMaitre's distribution rights of
Endologix's aortic endovascular products in Europe.
Under the terms of the agreement, Endologix will pay LeMaitre
$1.3 million to begin selling direct on September 1, 2011.
Previously, LeMaitre held distribution rights in certain European
countries for Endologix's Powerlink® System, and related products,
through June 30, 2013.
John McDermott, President and Chief Executive Officer of
Endologix, commented, "This agreement allows us to accelerate our
planned transition to a direct sales force in Europe and gain
control of the sales channel at an important time in the
development of our European business. It provides us with the
opportunity to begin establishing a presence and developing
physician relationships ahead of the anticipated European launch of
our Nellix®Endovascular System and Ventana™ Fenestrated Stent Graft
System in 2012. Both organizations are committed to a smooth
transition and we would like to thank LeMaitre for their
partnership over the past few years."
Mr. McDermott continued, "Importantly, we expect that this
agreement will have no impact on our full year revenue guidance and
continue to expect full year 2011 revenues of $78 million to $82
million. We will provide additional details during our
upcoming second quarter 2011 financial results conference call
scheduled for Thursday, July 21, 2011."
LeMaitre Vascular also announced that it has divested its
TAArget and UniFit stent graft product lines to Duke Vascular, Inc.
for an undisclosed amount and the assumption of certain related
liabilities.
George W. LeMaitre, Chairman and Chief Executive Officer of
LeMaitre, said, "These two transactions mark our exit from the
stent graft market, which will allow us to focus on our own core
vascular products, where we believe our sales force can drive the
most value. We expect that the outcome will eventually be a
leaner, faster-growing organization. These transactions will
also help offset some of the restructuring payments and charges
that we have incurred in recent quarters. We will provide
further details and the impact on our financial guidance in our
second quarter conference call scheduled for Thursday, July 28,
2011."
About Endologix, Inc.
Endologix, Inc. develops and manufactures minimally invasive
treatments for aortic disorders. The Company's focus is
endovascular stent grafts 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. The
Nellix® Endovascular System and Ventana™ Fenestrated Stent Graft
System are investigational devices. Additional information can
be found on Endologix's Web site at www.endologix.com.
The Endologix, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10016
About LeMaitre Vascular
LeMaitre Vascular is a provider of devices for the treatment of
peripheral vascular disease. The Company develops, manufactures and
markets disposable and implantable vascular devices to address the
needs of vascular surgeons. The Company's devices are used to treat
peripheral vascular disease; a condition the Company believes
affects at least 20 million people worldwide.
Well-known to vascular surgeons, the Company's diversified
product portfolio consists of brand name devices used in arteries
and veins outside of the heart, including the Expandable LeMaitre
Valvulotome and Pruitt F3 Carotid Shunt. For more information
about the Company, please visit http://www.lemaitre.com.
The LeMaitre Vascular, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10015
Endologix Forward-Looking Statements
Except for historical information contained herein, this news
release contains forward-looking statements,including with respect
to the establishment of a direct sales force in Europe, 2011
financial guidance, and the launch of new products, the accuracy of
which are necessarily subject to risks and uncertainties, all of
which are difficult or impossible to predict accurately and many of
which are beyond the control of Endologix. Many factors may cause
actual results to differ materially from anticipated results,
including the uncertainties related to the ability to create and
sustain a direct sales force in Europe, the success of sales
efforts for the Powerlink System and related products, regulatory
approvals and other economic, business and competitive factors. The
Company undertakes no obligation to update its forward looking
statements. Please refer to the Company's Annual Report on Form
10-K for the year ended December 31, 2010, and the Company's other
filings with the Securities and Exchange Commission, for more
detailed information regarding these risks and other factors that
may cause actual results to differ materially from those expressed
or implied.
LeMaitre Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Statements in this press release regarding the Company's
business that are not historical facts may be "forward-looking
statements" that involve risks and uncertainties. Forward-looking
statements are based on management's current, preliminary
expectations and are subject to risks and uncertainties that could
cause actual results to differ from the results predicted. These
risks and uncertainties include, but are not limited to, the risk
that the Company may not realize the anticipated benefits of its
restructuring activities and other risks and uncertainties included
under the heading "Risk Factors" in its most recent Annual Report
on Form 10-K, as updated by its subsequent filings with the SEC,
all of which are available on the Company's investor relations
website at http://www.lemaitre.com and on the SEC's website at
http://www.sec.gov. Undue reliance should not be placed on
forward-looking statements, which speak only as of the date they
are made. The Company undertakes no obligation to update publicly
any forward-looking statements to reflect new information, events,
or circumstances after the date they were made, or to reflect the
occurrence of unanticipated events.
CONTACT: COMPANY CONTACTS:
Endologix, Inc.
John McDermott, CEO
(949) 595-7200
www.endologix.com
LeMaitre Vascular, Inc.
David B. Roberts
President
781.221.2266 x119
droberts@lemaitre.com
INVESTOR CONTACTS:
The Ruth Group (for Endologix)
Nick Laudico (646) 536-7030
Zack Kubow (646) 536-7020
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