Vascular device company AngioDynamics has exercised its option to purchase certain assets of Microsulis Medical Ltd. including a leading microwave ablation technology and its worldwide distribution rights.
UK company Microsulis specialises in minimally invasive, microwave ablation technology for the coagulation of soft tissue. It developed the Accu2i pMTA microwave ablation system for percutaneous use, which utilises a single, high-power, high-frequency 2.45 GHz saline-cooled needle that delivers claimed significant advantages to clinicians and patients, including faster and larger soft tissue ablations.
In March 2012, AngioDynamics and Microsulis established a strategic relationship granting AngioDynamics exclusive distribution rights to market and sell the Accu2i pMTA microwave ablation system in all markets outside the United States from May 2012 through December 2013. The agreement included the exclusive option to purchase substantially all of the global assets and certain liabilities of Microsulis, including its microwave ablation technology and worldwide distribution rights. We followed that story here.
AngioDynamics will now exercise this option by acquiring certain assets for an upfront cash payment of $10.0 million, and $5.0 million on December 31, 2013. AngioDynamics will also assume up to $1 million of liabilities. Microsulis stakeholders could also receive additional cash consideration, based on Microsulis’ performance over the next nine years.
“This transaction strengthens AngioDynamics’ position as the clear market-leading innovator in the $250 million global tissue ablation market, with a complete offering of thermal and non-thermal technologies that includes microwave, radiofrequency and the NanoKnife System,” said Joseph M. DeVivo, President and Chief Executive Officer of AngioDynamics. “The nine months we’ve operated with Microsulis under the strategic relationship initiated in March 2012 has further proven to us this technology is the most innovative microwave system on the market today. Our thermal ablation business, which generated $23 million of global sales in fiscal year 2012, has been flat over the last three years. With the addition of microwave, we expect sales to grow an average of 20% annually over the next three years at margins that are nicely accretive to our overall business. We look forward to launching the second generation Accu2i pMTA applicator in the U.S. shortly after the transaction closes.”
The the Accu2i pMTA microwave ablation system was CE Marked in February 2010 and FDA 510(k) cleared in August 2010. In December 2012, Microsulis was granted FDA 510(k) clearance to market an upgraded Accu2i pMTA applicator.