Angiotech to acquire vascular graft product line from Edwards Lifesciences for $14 million

By Angela McDaniels

Seattle, Nov. 3 - Angiotech Pharmaceuticals Inc. said it has entered into a definitive agreement to acquire the Lifespan ePTFE vascular graft business from Edwards Lifesciences Corp. for $14 million in cash.

The agreement includes a distribution arrangement with Edwards under which Edwards will retain certain rights to distribute the existing Lifespan product line globally for up to five years and become the exclusive distributor of Angiotech's Vascular Wrap paclitaxel-eluting mesh products as packaged in combination with the Lifespan vascular graft products in the European Union for up to three years following regulatory approval.

Angiotech said the agreement gives it the right to exercise co-distribution rights to the standalone Lifespan product line in the United States. The company can also co-distribute the standalone products in the European Union after a period of three years.

Angiotech has retained all distribution rights for Vascular Wrap products packaged in combination with ePTFE vascular grafts in the United States and for any standalone Vascular Wrap products worldwide.

Angiotech expects the transaction to close in the fourth quarter.

The Edwards Lifespan ePTFE product line has over 75 product iterations and includes vascular grafts of various sizes and lengths. It is based in Laguna Hills, Calif.

"This is a non-dilutive transaction, as at the current revenue levels this operation is expected to be a positive contributor to our cash flow and earnings while we conduct clinical studies and pursue various regulatory approvals for the Vascular Wrap product," said Tom Bailey, vice president of business development, in a company press release.

Edwards Lifesciences is a biotechnology company headquartered in Irvine, Calif., that develops products for cardiovascular diseases.

Vancouver, B.C.-based Angiotech is a pharmaceutical company that combines pharmaceutical compounds with medical devices and biomaterials to create solutions for poorly addressed disease states and to improve surgical outcomes.

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