CryoLife's Stake in ValveXchange - Analyst Blog
July 11 2011 - 11:15AM
Zacks
Medical devices and tissue
processing company CryoLife (CRY) recently
revealed an equity investment of $3.5 million in ValveXchange Inc.,
a privately held device company hived out of Cleveland Clinic.
ValveXchange develops life-long
heart valve replacement know-how including exchangeable
bioprosthetic leaflets. It is an emerging tech company, based in
Colorado, developing the first “serviceable” bio-prosthetic heart
valve. By raising the probability of time-to-time, less invasive
exchange of old leaflet set, younger patients may avoid the
utilization of a mechanical valve and its life-long Coumadin
anti-coagulation therapy.
Per the deal terms, CryoLife will
be given about 19% initial equity in ValveXchange along with
certain other rights, such as the ability to negotiate with
ValveXchange for distribution rights in Europe. In addition,
CryoLife will provide as much as $2 million in extra debt funding
using a revolving credit facility.
A spokesperson for CryoLife stated
that the novel replaceable bioprosthetic leaflet design of
ValveXchange heart valves may have the capability to obviate repeat
open heart surgeries (due to long-term wear problems associated
with present-day biological valves).
For its part, a senior official of
ValveXchange stated that animal studies reveal encouraging data set
with valve leaflet and second exchanges proceeding without hitches.
The funding will assist first-in-man procedures of its Vitality
Exchangeable Heart Valve System, expected later during the year,
followed by an anticipated European clinical trial.
The Vitality Exchangeable Heart
Valve System brings together the longevity and safety of frequently
utilized surgical bioprosthetic valves with the capability to
provide less invasive access for transapical valve exchange.
Vitality, a two-part valve platform for patients of different ages,
may beat the challenges from prolonged leaflet wear and the need
for repeated invasive valve replacement operations.
The second generation system from
ValveXchange, the Vanguard, is expected to permit implantation and
also valve exchange procedures to be performed transapically, via a
minor cut between the ribs and a small hole at the apex of the
heart, which heal rapidly.
CryoLife is an early mover in the
process and distribution of implantable human tissues for usage in
cardiac and vascular operations across Canada and the U.S. Among
other products, the company’s CryoValve SG pulmonary heart valve,
based on its proprietary SynerGraft know-how, received FDA 510(k)
clearance for replacement of defective natural or prosthetic
pulmonary valves.
CryoLife possesses 10 patents
covering heart valve and associated know-how with 10 more patent
applications under process. The company competes, in certain
niches, with St. Jude Medical (STJ) and
Edwards Lifesciences Corp. (EW).
CRYOLIFE INC (CRY): Free Stock Analysis Report
EDWARDS LIFESCI (EW): Free Stock Analysis Report
ST JUDE MEDICAL (STJ): Free Stock Analysis Report
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