Endologix Inc. (NSDQ:ELGX) signed a deal to acquire Nellix Inc. for $15 million in stock, the company said today.
The Irvine, Calif.-based developer of aortic disorder devices hopes the deal increases its share of the aortic repair market.
Palo Alto, Calif.-based Nellix is developing an endograft for the treatment of abdominal aortic aneurysms, and the device would complement Endologix‘s flagship endovascular stent graft product, the Powerlink System, according to the company.
"We believe Nellix is the most revolutionary [endovascular aortic repair] technology in the world and will help position Endologix as the innovation leader in aortic aneurysm treatment. Nellix has developed a new technology that will allow more physicians to treat more patients than with any of the existing devices," ELGX CEO John McDermott said in prepared remarks.
So far, Nellix’s clinical results from implant patients with up to two years follow-up have not had any abdominal aortic aneurysms-related mortalities, aneurysm ruptures, surgical conversions or stent graft migrations.
The agreement between the two companies stipulates additional milestone-based, stock payments of up to $39 million. The deal also includes a commitment for a $15 million equity investment in Endologix from Nellix’s majority shareholder Essex Woodlands Health Ventures, Endologix said.
