OXFORDSHIRE, England & SHANGHAI--(BUSINESS WIRE)--Dec. 19, 2016--
Lombard Medical, Inc. (NASDAQ: EVAR), a medical device company focused
on endovascular aneurysm repair, and MicroPort Scientific Corporation
(HK: 0853), a leading global manufacturer and marketer of a diversified
portfolio of medical devices, today announced a strategic partnership
and a significant infusion of capital into Lombard Medical by MicroPort.
This partnership will allow Lombard Medical to accelerate
commercialization in key global markets with its two key products:
Aorfix™, the only stent graft to hold global approvals to treat
abdominal aortic aneurysms (AAA) with aortic neck angles up to 90
degrees, and Altura, a highly innovative stent graft that offers a
simple and predictable treatment option for standard AAA anatomy.
The agreement provides MicroPort the exclusive marketing rights for
Lombard Medical’s Aorfix and Altura AAA stent graft product lines in
China, as well as the right to a technology license to manufacture the
products for the China market. Lombard Medical and MicroPort will also
enter into a component supply manufacturing agreement whereby MicroPort
will manufacture in its facilities in Shanghai certain components for
the Aorfix and Altura product lines. Lastly, MicroPort will also have
exclusive marketing rights for both Altura and Aorfix in Brazil.
In exchange, MicroPort has invested $15 million in a combination of
Lombard Medical common stock and convertible debt. MicroPort purchased
$5 million in common stock at $0.62 per share representing a 29%
ownership stake in Lombard Medical based on common stock currently
outstanding. MicroPort will have a pro rata purchase right on future
equity offerings by Lombard Medical. In addition, MicroPort was issued a
5-year $10 million unsecured promissory note bearing interest at a rate
of six-month LIBOR plus 4.0% from Lombard Medical which is convertible
at any time prior to maturity by MicroPort into Lombard Medical common
stock at a price of $0.90 per share. Lombard Medical will also appoint
two representatives of MicroPort to serve on its board of five
Following the transaction, Lombard Medical will have 27,950,785 shares
of common stock outstanding. Lombard Medical plans to use the proceeds
of this investment for general corporate purposes.
“The strategic partnership with MicroPort benefits all Lombard
stakeholders, including physicians and their patients, our employees
and, of course, our shareholders. The financing provides the necessary
operating capital to fund our commercial and regulatory programs aimed
at accelerating adoption and utilization across Europe where Aorfix is
well accepted and Altura is generating significant interest among
clinicians,” Lombard Medical CEO Simon Hubbert commented. “The
agreements will also provide the infrastructure, regulatory support and
capital for launching our technologies into the fast-growing China
endovascular market, where MicroPort has a strong track record for
commercializing innovative vascular devices. In addition, we believe our
planned component manufacturing collaboration will significantly reduce
manufacturing costs and increase margins for both Aorfix and Altura
product lines, which will ultimately improve our overall profitability.”
MicroPort Chairman and CEO Dr. Zhaohua Chang stated, “We are extremely
pleased to be adding two highly differentiated products in Aorfix and
Altura to our market-leading endovascular portfolio in both China and
other emerging markets. We look forward to partnering with Lombard
Medical to offer the premier portfolio of endovascular devices to treat
patients requiring aortic artery aneurysm repair.”
MicroPort Scientific Corporation is a leading medical device company
with business focusing on innovating, manufacturing, and marketing
high-quality and high-end medical devices globally. MicroPort maintains
world-wide operations in a broad range of business segments including
Cardiovascular, Orthopedic, Electrophysiological, Endovascular,
Neurovascular, Surgical, Diabetes Care and Endocrinal Management, and
others. MicroPort is dedicated to becoming a patient-oriented global
enterprise focused on improving and reshaping patient lives through the
application of innovative science and technology. For more information,
please visit www.microport.com.
About Lombard Medical, Inc.
Lombard Medical, Inc. is an Oxfordshire, UK-based medical device company
focused on the $1.8bn market for minimally invasive treatment of
abdominal aortic aneurysms. The Company has global regulatory approval
for Aorfix™, an endovascular stent graft that has been specifically
designed to treat patients with aortic neck angulation up to 90 degrees.
The Company currently markets the Altura® endograft system in Europe.
Altura is an ultra-low profile endovascular stent graft that offers a
simple and predictable solution for the treatment of more standard AAA
anatomies. For more information, please visit www.lombardmedical.com.
About Aorfix™ Endovascular Stent Graft
Aorfix™ is an endovascular stent graft system for treating infra-renal
aortic and aorto-iliac aneurysms, also known as abdominal aortic
aneurysms (AAAs). When placed within the aneurysm, Aorfix creates an
internal bypass of the aneurysm to reduce the risk of rupture. Aorfix is
the first and only endovascular stent graft with global approvals for
the treatment of patients with aortic neck angulations up to 90 degrees.
Aorfix features an exclusive helical and circular design that allows it
to conform to the natural contours of human anatomy, including aortic
necks with high angulations and iliac arteries with extreme bends.
Aorfix has been evaluated in three studies and used in more than 7,000
procedures worldwide. Aorfix has a CE Mark, Japan regulatory approval,
and received FDA approval in 2013.
About Altura® Endograft System
The Altura system represents a paradigm shift in endograft design that
offers a simple and predictable treatment option for standard AAA
anatomy. Delivered via an ultra-low profile 14F catheter, Altura allows
for repositioning during deployment and accurate graft placement at each
renal artery enabling physicians to utilize all of the available aortic
neck. It also eliminates the need for cannulation that results in a
simple, safe and consistent deployment with predictable, shorter
procedure times. With just six product sizes, the Altura system allows
the majority of patients who present for EVAR repair to be treated
quickly with minimal hospital stay and recovery times. The Altura system
received CE Mark in 2015. Lombard launched the device in the UK and
Germany in February 2016 with a broader international rollout currently
This announcement contains forward-looking statements that reflect the
Company’s current expectations regarding future events. These
forward-looking statements generally can be identified by the use of
words or phrases such as “believe,” “expect,” “future,” “allow,” “look
forward to,” “aim,” “plan,” “should,” “will,” “provide,” “expand,”
“grow” or words and phrases of similar meaning. Statements that describe
objectives, plans or goals also are forward-looking statements.
Forward-looking statements are subject to risks, management assumptions
and uncertainties. Actual results could differ materially from those
projected herein and depend on a number of factors, including the
ability of the Company to achieve its financial and operational goals,
the success of the Company’s research and development and
commercialization strategies, the uncertainties related to the
regulatory process and the acceptance of the Company’s products by
hospitals and other medical professionals, the uncertainty of estimated
revenues and profits, the uncertainty of current domestic and
international economic conditions that could adversely affect the level
of demand for the Company’s products and increased volatility in foreign
exchange rates, the inability to raise additional funds, and the risks,
uncertainties and other factors described under the heading “Risk
Factors” in the Company’s Form 20-F filed with the Securities and
Exchange Commission dated April 29, 2016. Readers are urged to consider
these factors carefully in evaluating the forward-looking statements.
The forward-looking statements included herein are made only as of the
date of this report and the Company undertakes no obligation to update
these statements in the future.
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Source: Lombard Medical, Inc.
Lombard Medical, Inc.
Simon Hubbert, +44 (0)1235 750 800
William J. Kullback, +1-858-750-5245
MicroPort Scientific Corporation
Sun, +86 2138 954 6008
Chief Financial Officer
Chen, +86 2138 954 6008
SVP International Operations & Investor