Lombard Medical Technologies (NSDQ:EVAR) yesterday said it took out a $26 million term loan from Oxford Finance it plans to use in funding the global rollout of its Aorfix stent graft for treating abdominal aortic aneurysms.
Irvine, Calif.-based Lombard said it booked the 1st $11 million from the loan April 24, with another $10 million pegged to “a specific near-term revenue milestone” and the final $5 million contingent on another sales target.
The Aorfix device is designed to treat aneurysms with a neck angle of up to 90°, which the company said it often a feature in complex AAA cases. The FDA approved Aorfix in February 2013; just last month regulators in Japan green-lighted the AorFlex delivery system used to implant Aorfix.
“This facility from Oxford solidifies our balance sheet and significantly extends our cash runway by providing non-dilutive capital to support key growth initiatives necessary for our successful global launch of Aorfix, as well as continued development of other innovative new products,” CEO Simon Hubbert said in prepared remarks.
Oxford Finance senior managing director Christopher Herr added that his firm expects Lombard “to continue to gain market share given the distinct advantage its lead product, Aorfix, has over other competing AAA stent grafts.”
