AngioDynamics Acquires FlowMedica Benephit(R) Renal Therapy Product LineQUEENSBURY, N.Y.--(BUSINESS WIRE)--Jan. 12, 2009
(NASDAQ: ANGO), a leading provider of
innovative medical devices used by interventional radiologists,
nephrologists and surgeons for the minimally invasive treatment of
cancer and peripheral vascular disease, announced today that it has
purchased certain assets of privately-held FlowMedica Inc.
, a leader in
the emerging field of Targeted Renal Therapy
transaction was structured as an asset purchase under which
will pay $1.75 million
in cash for the assets of the
business plus a contingent payment based on fiscal 2011 sales of Benephit
Pioneered by FlowMedica, TRT is a therapeutic approach that delivers
drugs directly to the kidneys in order to prevent and treat acute kidney
injury (AKI). AKI often results from many common interventional and
surgical procedures, and is a significant problem in high renal risk
patients such as the elderly and diabetics. Benephit infusion
products deliver therapeutic agents directly into both renal arteries
through dedicated infusion catheter and sheath systems while allowing
simultaneous interventional coronary, peripheral, endovascular and
surgical procedures. TRT can also be employed for stand-alone renal drug
delivery in other hospital settings when desired. The Benephit
systems have been granted 510(k) clearance from the FDA and the CE Mark,
and are commercially available.
"With dramatically increasing volumes of interventional procedures among
the high-risk patient population, the prevention and treatment of acute
kidney injury is a major area of concern for caregivers," said Paul
Teirstein, M.D., Chief of Cardiology and Director of Interventional
Cardiology at the Scripps Clinic in La Jolla, California, and
Visiting Professor of Medicine at Columbia University Medical Center.
"While employing the Benephit systems in numerous high-risk
cases, I have found it simple to use and very effective in providing a
significant improvement in clinical outcomes for my patients."
"This purchase is an example of AngioDynamics' acquisition strategy to
focus on small transactions that extend our product offerings, can be
sold by our sales force and have near-term revenue potential," said
Eamonn Hobbs, President and CEO of AngioDynamics. "We believe
FlowMedica's Benephit infusion systems have the potential to
address the needs of patients at risk for AKI that result from common
medical procedures and is also associated with certain medical
conditions. This represents a significant large and unmet market
opportunity with an annual value of several hundred million dollars. We
intend to begin marketing the systems through our Peripheral Vascular
sales team. If we are successful, this product line could become a
significant contributor to our financial results in the years ahead."
AngioDynamics has hired 10 FlowMedica employees and plans to continue to
operate from FlowMedica's Fremont, California office. In fiscal year
2009, the Company expects the FlowMedica acquisition to have a modest
impact on net sales and to be $0.01 per share dilutive to earnings. In
fiscal 2010, the acquisition is expected to produce incremental sales of
$3 million, and to be accretive to earnings.
AngioDynamics, Inc. is a leading provider of innovative medical devices
used by interventional radiologists, surgeons, and other physicians for
the minimally invasive treatment of cancer and peripheral vascular
disease. The Company's diverse product line includes market-leading
radiofrequency ablation and irreversible electroporation resection
systems, vascular access products, angiographic products and
accessories, dialysis products, angioplasty products, drainage products,
thrombolytic products, embolization products and venous products. More
information is available at www.angiodynamics.com.
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CONTACT: AngioDynamics, Inc.
D. Joseph Gersuk, CFO, 800-772-6446 ext. 1608
EVC Group, Inc.
Jenifer Kirtland, 415-896-6820 (Investor Relations)
Doug Sherk, 415-896-6820 (Investor Relations)
Chris Gale, 646-201-5431 (Media)
Source: AngioDynamics, Inc.