Health: Admedus shares fly 40pc on first trading day in six months
Health & Biotech
Health & Biotech
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Shares in medtech Admedus (ASX:AHZ) have flown 40 per cent on their first trading day in six months, after the company netted $36 million by selling off two of its bio-scaffold products.
Admedus told the market this morning that it had sold the rights to its CardioCel and VascuCel product ranges to NASDAQ-listed, US-based medtech LeMaitre Vascular for $36.2 million.
CardioCel and VascuCel originated from Admedus’ proprietary, regenerative bio-scaffold platform technology and are used to help repair heart deformities.
The company came out of a six-month-long trading suspension on the news, with its shares rising as much as 40 per cent to 8.4c. It had been in trading suspension since April, after a deal under which its subsidiary Admedus Vaccines would be bought out by Constellation Therapeutics fell through. Admedus Vaccines went into administration as a result, forcing the company to recapitalise, and extend its trading suspension seven times.
Today, CEO Wayne Paterson told Stockhead the sale of CardioCel and VascuCel, completed a plan it “set out to achieve for shareholders two years ago”.
“Obviously it’s satisfying to be able to restructure the company into something much more valuable and competitive. We are now at the beginning of the journey to unlock real value for patients, shareholders, and all stakeholders,” he said.
“This is a transformational milestone for us. The partnership strategy was possible only after we built a credible product profile over the past two years.
“LeMaitre’s sales infrastructure and scale will propel the clinical credibility and brand profile Admedus has already established for CardioCel and VascuCel. We anticipate LeMaitre’s channel will successfully expand the adoption of these products.”
It now leaves the company to focus on its transcatheter aortic valve replacement (TAVR) programme, which is already underway and showing positive results in sheep.
“We plan our first-in-human studies for our single-piece 3D aortic valve in 2020,” Paterson said.
“Based on our current laboratory and animal study findings there is potential for single-piece 3D aortic valve and TAVR devices to be a breakthrough for patients.”
Admedus will receive $22.8 million upfront, followed by $2m in deferred payments in the next three years, as well as $11.4m in potential earn-out payments should certain sales milestones be hit.
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