CryoLife Inc. (NYSE:CRY) today announced that it has signed a strategic distribution and credit facility agreement with Endospan with an option to purchase the company.
Kennesaw, Georgia-based CryoLife will have exclusive distribution rights to Endospan’s Nexus stent graft system in Europe. CryoLife will pay $10 million upfront and provide up to $15 million in debt financing to Israel-based Endospan, subject to U.S. clinical development.
The Nexus stent graft system is an off-the-shelf endovascular stent system designed to repair aneurysms and dissections in the aortic arch.
“We are very pleased to announce a European distribution agreement with CryoLife that allows us to leverage their company’s depth of experience and proven capabilities in the endovascular market together with our combined relationships with European opinion leaders,” Endospan CEO Kevin Mayberry said in a news release. “This investment also positioned Endospan to seek U.S. Food and Drug Administration approval for the Nexus stent graft system through a premarket approval study that is expected to start enrolling patients in 2020.”
CryoLife will also have the option to purchase Endospan for a predetermined price up until 90 days following FDA approval of the Nexus device in the U.S.
“We believe the addition of Nexus to our product offerings will make a meaningful contribution to our future growth as it gives us immediate access to the $150 million EU market and has the potential to expand our addressable market by over $800 million,” CryoLife president & CEO Pat Mackin said in a news release. “Nexus is another highly differentiated device that, when included in our European channel, further solidifies our position as a global leader in aortic repair, as it strengthens our highly competitive product portfolio in Europe. As we gain experience with Nexus over the next few years, we may elect to further capitalize on this opportunity with our option to purchase Endospan.”
