London, UK, 14 December 2006 - Lombard Medical Technologies PLC ("Lombard
Medical") today announces a strategic collaboration with the leading US medical
technology company, Medtronic Inc. ("Medtronic"), for Lombard Medical's RefixTM
Endostapler ("RefixTM"). Endostaplers are used to provide increased fixation of stent grafts which treat abdominal and thoracic aortic aneurysms, a balloon-like weakness in the artery wall.
This strategic collaboration includes a distribution agreement whereby Medtronic has obtained the right to market RefixTM and will purchase RefixTM from Lombard Medical at an agreed transfer price. Medtronic intends to market RefixTM under the trade name Securant. Lombard Medical expects to complete the first clinical cases, following which Medtronic will initiate a controlled launch of the product.
The collaboration also includes a licence agreement that allows Medtronic to use Lombard Medical's RefixTM technology to develop "next generation" products in the field of cardiovascular disease. Medtronic's rights under this licence
agreement will commence provided that Medtronic elects to pay Lombard Medical a
US$3 million licence fee following Refix'sTM approval by the FDA. Royalties up
to a maximum of US$5 million will also be payable by Medtronic to Lombard
Medical on sales under the licence agreement. In addition, Medtronic will make
available to Lombard Medical a loan facility of US$3 million.
Lombard Medical has retained co-distribution rights relating to the use of Refix TM with its own thoracic stent graft and has also retained exclusive rights in the large potential market for the endovascular fixation of percutaneous heart valves as well as potential applications in urinary and gastrointestinal surgery. In addition, Lombard Medical has secured a licence to Medtronic's Jervis/Raychem patent family in the endostapler field. These patents relate to the use of nitinol in medical devices.
Lombard Medical's RefixTM Endostapler is a device for the percutaneous delivery
of tiny fasteners (staples), which are pushed through both the wall of the stent graft as well as the wall of the aorta, to keep the stent graft firmly in place.
Endovascular stent grafts provide vascular surgeons and interventional
radiologists with a minimally invasive way to treat aneurysms. The stent graft
re-routes the flow of blood into the aneurysm, thus avoiding the potential
rupture of the balloon-like weakness, which could otherwise have fatal results.
Alistair Taylor, Executive Chairman of Lombard Medical, said:
"We are very pleased to enter into this strategic collaboration with Medtronic
in the field of endovascular stapling. Medtronic is a world leader in the
commercialisation of stent grafts for the treatment of aortic aneurysms and we
look forward to the growth of RefixTM sales through Medtronic's worldwide
distribution channels. We also look forward to working with Medtronic to develop fixation devices for the next generation of aneurysm stent grafts."
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