LeMaitre Vascular Acquires Lifespan Vascular Graft
November 17 2010 - 6:13PM
LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of disposable and
implantable peripheral vascular devices, announced today that it
has acquired the Lifespan Vascular Graft manufacturing business
from Angiotech Pharmaceuticals, Inc. Lifespan is a vascular
prosthesis used in the repair or replacement of diseased arteries
and in the creation of vascular access sites for dialysis. The
Company paid Angiotech a net purchase price of $2.8 million in
exchange for the business, which includes a factory located in
Laguna Hills, California.
Lifespan was introduced in the mid-1990s and is currently sold
in the United States, the European Union, Japan, Canada, and
several other markets through third-party distributors, primarily
Edwards Lifesciences. The net purchase price is 1.8 times
Angiotech's sales to distributors during its four most recently
completed fiscal quarters.
In a related transaction, LeMaitre Vascular and Edwards have
agreed to a wind-down of Edwards' distribution of Lifespan, which
is scheduled to conclude on November 30, 2010. The Company
will pay Edwards $0.75 million in exchange for orderly market
transitions in Europe (where Lifespan sales are strongest) and
Japan, and will pay approximately $0.5 million for the majority of
Edwards' inventory. The Company is also receiving the Lifespan
trademark from Edwards. The Company intends to begin selling
Lifespan through its own worldwide sales force on December 1,
2010.
"ePTFE vascular grafts are an essential vascular surgery
implant and are complementary to our growing portfolio of vascular
devices and implants," said David B. Roberts, President of LeMaitre
Vascular.
The Company does not expect to record material Lifespan revenues
in Q4 2010 and expects the transaction will reduce Q4 operating
income by approximately $0.3 million. The Company expects
Lifespan revenues of approximately $1.7 million in 2011. The
transaction is expected to reduce operating income by approximately
$0.7 million in 2011 and be accretive thereafter. These
amounts exclude the impact of any future restructuring
activities.
Analyst Day
The Company will be discussing the Lifespan transaction at its
upcoming Analyst Day. The Company is hosting an Analyst Day to
update the investment community on its 2011 guidance, growth
initiatives, and strategic priorities. Analyst Day will be
held Thursday, December 2, 2010 at Ruth's Chris Steakhouse, 148
West 51st Street (& 7th Avenue), New York City, and will begin
at 9am EST and conclude at 12:30pm EST. Please contact Brian
Kickham (bkickham@lemaitre.com) for information regarding Analyst
Day.
About LeMaitre Vascular
LeMaitre Vascular develops, manufactures and markets disposable
and implantable vascular devices to address the needs of vascular
surgeons. The Company estimates that peripheral vascular disease
affects more than 20 million people worldwide. The Company's
diversified product portfolio consists of brand-name devices
including the Expandable LeMaitre Valvulotome and the Pruitt F3
Carotid Shunt.
LeMaitre and the LeMaitre Vascular logo are registered
trademarks of LeMaitre Vascular, Inc. This press release contains
other trademarks and trade names of the Company and third
parties.
For more information about the Company, please visit
http://www.lemaitre.com.
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. Specifically,
statements regarding the Company's financial guidance, its
operational objectives, the transaction with Edwards, and the
orderliness of market transitions in Europe and Japan, are
forward-looking statements involving 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 does not complete its
Lifespan transaction with Edwards; the risk that the Company does
not realize the anticipated benefits of its transactions; the risk
that the Company encounters difficulties in effecting the
conversion of Lifespan Vascular Graft sales from a distribution
model to a direct sales model; the significant competition the
Company faces from other companies, technologies, and alternative
medical procedures, including newer endovascular technologies; the
potential for encountering unfavorable foreign currency exchange
rate fluctuations; risks related to product demand and market
acceptance of the Company's products; the risk that third parties
claim that we infringe upon their intellectual property rights; and
the risks and uncertainties included under the heading "Risk
Factors" in our most recent Annual Report on Form 10-K, as updated
by our 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.
http://www.lemaitre.com/
CONTACT: LeMaitre Vascular, Inc.
David B. Roberts, President
781.425.1693
droberts@lemaitre.com
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