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Lombard buys Altura Medical for $50m

US-based medical device firm Lombard Medical has acquired Silicon Valley-based Altura Medical, for around $50.5m.

Lombard

Under the deal, Lombard will issue its $15m worth common stock at $4 per share to Altura, in addition to assuming $5.5m in bank debt and $2.5m in certain liabilities and transaction-related costs.

The deal will also allow Altura to receive around $27.5m based on the achievement of certain commercial and regulatory milestones that are expected in the next five years.

The agreement provides an option to Lombard to pay the additional consideration in either cash or stock.

Lombard Medical CEO Simon Hubbert said: "The acquisition of Altura and the launch of its new AAA stent graft will provide a near-term and substantial increase in revenues.

"In fact, we believe this innovative technology could account for up to 20 percent of our 2016 total revenue."

Established in 2008, Altura Medical has developed an ultra-low profile endovascular stent graft technology, which provides a simple and predictable solution to treat abdominal aortic aneurysm (AAA) anatomies.

The agreement provides an option to Lombard to pay the additional consideration in either cash or stock.

The Altura endograft system obtained CE mark approval in this year and plans to introduce the device in Europe in early 2016.

In early 2016, Lombard also plans to file an investigational device exemption (IDE) application with the US FDA, while recruitment will begin for the US clinical study later in the same year.

Lombard produces an endovascular stent graft Aorfix that has been designed to treat complex tortuous anatomies, which are frequently observed in advanced AAA disease.


Image: Lombard has purchased endovascular stent graft developer Altura Medical. Photo: courtesy of adamr/ FreeDigitalPhotos.net.