AngioDynamics (NSDQ:ANGO) said today that put up $66 million for Eximo Medical and its B-Laser peripheral atherectomy device and cut its fiscal 2020 earnings outlook to allow for the cost of launching the Eximo product.
Latham, N.Y-based AngioDynamics said the deal for Eximo involved $46 million in up-front cash and another $20 million in technical and sales milestones. The Rehovot, Israel-based company won 510(k) clearance from the FDA for B-Laser for treating infrainguinal stenoses and occlusion, including in-stent restenosis.
“The acquisition of Eximo brings a remarkable, foundational technology to our portfolio that will change the way caregivers deliver treatment to patients with PAD,” president & CEO Jim Clemmer said in prepared remarks. “The market is ripe for disruption and the level of precision, safety and efficiency offered to physicians by this laser technology creates a substantially differentiated alternative to legacy atherectomy devices.”
“We are very happy to join AngioDynamics,” added Eximo CEO Yoel Zabar. “We believe that AngioDynamics’ existing resources and commercial acumen will enable a large number of patients to benefit from Eximo’s laser technology, and we look forward to extending its utility into other indications within vascular and elsewhere. We would also like to thank the number of physicians that have already partnered with us during our journey, and we look forward to continuing our work together as we expand our physician base.”
Eximo was founded by Accelmed, which led a $1.6 million Series A round last year for the company, with participation from the Alfred Mann Institute at the Technion, the Technion R&D Foundation and a private investor.
Eximo product launch costs prompt earnings guidance cut
In reporting its fiscal first-quarter numbers, AngioDynamics cut its earnings outlook for fiscal 2020 to cover the cost of launching the Eximo tech.
Losses grew 171.9% to $-1.3 million, or -3¢ per share, on sales growth of3.3% to $66.0 million for the three months ended August 31, compared with the same period last year. Adjusted to exclude one-time items, earnings per share were 8¢, 4¢ ahead of the consensus on Wall Street, where analysts were looking for sales of $67.5 million.
“Our top-line and gross-margin performance in the quarter was in line with our expectations,” Clemmer said in a separate release. “We continue to build momentum and remain focused on driving growth by creating a suite of disruptive and differentiated technology. The divestiture of the Namic fluid management business allowed us to begin the year with a strong balance sheet, enabling strategic acquisitions like Eximo Medical, which we announced this morning. Additionally, we continue to make steady progress with site initiation in our NanoKnife Direct study for pancreatic cancer.”
AngioDynamics said it now expects to post fiscal 2020 adjusted EPS of 10¢ to 15¢, down from 25¢ to 30¢ previously. Full-year sales are still pegged at $280 million to $286 million.
ANGO shares closed down -2.5% at $17.71 yesterday.
