Angiotech Pharmaceuticals Inc. (OTC:ANPI) received a termination notice for the licensing agreement it has with Rex Medical LP for its Option retrievable vena cava filter.
Conshohocken, Pa.-based Rex Medical alleges that Angiotech "materially breached its obligations" under the deal, according to Angiotech.
The companies entered into a license, supply, marketing and distribution agreement in March 2008 for Rex Medical’s Option filter, which can act as both a retrievable or permanent vena cava implant.
Rex Medical’s notice of termination alleges that Angiotech failed to devote adequate, “commercially reasonable” resources to the sales and marketing of the device and “refused to make payments when due under the agreement, attempted to terminate the agreement without cause and attempted to abandon its responsibilities under the agreement," according to Angiotech.
The Vancouver, B.C.-based pharma firm, calling the allegations without merit, said it’s looking into arbitration as part of its "ongoing efforts to complete the recapitalization and restructuring of [its] long-term debt obligations.”
The Food & Drug Administration in June 2009 gave the green light for Angiotech and Rex Medical to market and sell the Option filter. At the time, the companies touted the potential market growth for the device over the next four years as somewhere in the $300 million range. The companies launched the product in the U.S. in August of that year.
Angiotech staked its fortunes to Boston Scientific Corp. (NYSE:BSX) and its Taxus drug-eluting stent (for which Angiotech makes the drug paclitaxel), but has struggled as sales of the stent are in the cellar and still falling. The company was de-listed from the NASDAQ exchange after failing to regain compliance with listing rules within a 180-day period that ended Jan. 3.
Rex plans to terminate the deal with Angiotech automatically April 24, 90 days from the date of its notice of termination, unless terminated earlier by mutual agreement, according to Angiotech.