Reva Medical (ASX:RVA) said today it will take up direct marketing of its peripheral and vascular scaffolds after Boston Scientific‘s (NYSE:BSX) right to negotiate for exclusive distribution of the products expired.
San Diego, Calif.-based Reva said that Boston Scientific had gained the right to negotiate for exclusive distribution rights under a 2007 agreement which would have positioned them to pay Reva 50% of average selling price for all product sales.
The election period for the rights was triggered after Reva produced “an extensive set of positive clinical data” supporting its Fantom drug-eluting coronary scaffold, the company said. Other terms of the distribution agreement had not been negotiated.
Reva Medical said it had begun direct sales efforts, hiring on former Abbott Vascular vet Joann Yao who worked on global marketing for Abbott’s Xience drug-eluting stent as a global marketing senior director. In the position, Yao will oversee the marketing and execution for its Fantom stent, and future products.
The company said it has inked its 1st customer contract in late June, with 2 additional contracts and more than 10 potential customers in negotiations.
“It appears that the timing and economics of the proposed arrangement led to BSC’s decision not to exercise their right to negotiate. We are pleased to retain complete control of the marketing and distribution for Fantom, and any of our future scaffolds. This allows us to have the latitude to drive product positioning and distribution, and customer relationships. The market’s reaction to our launch has been very supportive and we are optimistic that Fantom will fulfill the market’s desire for bioresorbable coronary scaffolds,” Reva CEO Reggie Groves said in a press release.
In April, Reva Medical won CE Mark approval in the European Union for its Fantom sirolimus-eluting bioresorbable coronary scaffold.