Medtronic (NYSE:MDT) agreed to acquire an option on the Chocolate PTA non-drug-coated balloon made by QT Vascular to treat peripheral vascular disease.
The purchase price is $28 million, according to Singapore’s Business Times, pegged to “achievement of certain milestones,” the company said. In February the companies inked a 5-year deal calling for Medtronic to distribute the Chocolate PTA device.
“We are excited that Medtronic, the world’s leading medical device company has taken an interest in our non-drug coated peripheral products,” QT Vascular CEO Eitan Konstantino said in prepared remarks. “This is a validation of the intrinsic value of our internally developed products and progress made to date. Management will continue to focus on achieving milestones related to this product line and our coronary and drug-coated product portfolio.”
QT Vascular said it still plans to develop a drug-coated version of the device called Chocolate Touch, which is the subject of a pivotal trial after winning an investigational device exemption from the FDA last year. The company said it also plans to continue working on its portfolio of coronary products.
The option on Chocolate PTA is due for a shareholders vote at an extraordinary general meeting that has yet to be scheduled.
In March QT Vascular signed a private placement deal with Gem Global Yield Fund for up to $14.3 million (SGD $20 million) over the next 30 months.
