AngioDynamics (NSDQ:ANGO) said today that it inked a non-binding deal with EmboMedics that would see it make a strategic investment in the resorbable microsphere maker, in return for exclusive licensing rights and a potential buyout down the line.
Latham, N.Y.-based AngioDynamics said it signed the letter of intent in January with Maple Grove, Minn.-based EmboMedics, which is developing a resorbable embolic microsphere called the ResoSphere.
The deal would see AngioDynamics buy an equity stake in EmboMedics, in return for the exclusive license and the right of 1st refusal on EmboMedics’ next-generation embolization technology, according to a regulatory filing.
AngioDynamics could also be in line for more equity investment in EmboMedics and possibly an all-out acquisition, according to the filing.
“Embolization is one of the fastest-growing segments in interventional radiology, and AngioDynamics has repeatedly expressed interest in re-entering the market,” AngioDynamics CFO Mark Frost told MassDevice.com via email. “We view our relationship with EmboMedics and the terms set forth on the non-binding letter of intent as very promising, and while this will have no near-term financial impact, we are excited about the potential of bringing its injectable and resorbable embolic microsphere technology to our customers worldwide.”
The agreement is still subject to due diligence and a nod from AngioDynamics’ board, plus any necessary regulatory requirements, AngioDynamics said.