Lombard Medical, Inc. recently announced that it has acquired Altura Medical. Lombard is an Irvine, California-based medical device company that makes devices for endovascular aneurysm repair (EVAR) of abdominal aortic aneurysms (AAAs), including the AorfixTM Endovascular Stent Graft. Altura Medical is a privately-held, venture-backed company, which is based in Silicon Valley. Altura has developed an ultra-low profile endovascular stent graft technology for the treatment of AAA, which received a CE Mark this year.
Depending on milestones, the acquisition could be worth $50 million. According to the terms of the transaction, Lombard will pay $23 million now in the form of: the issuance of $15 million of Lombard common stock at $4 per share; the assumption of $5.5 million in bank debt; and $2.5 million in liabilities and transaction-related costs. Additional payments of up to $27.5 million may be paid over the next five years based on achievement of commercial and regulatory milestones.
Lombard plans to launch Altura’s endograft system in Europe in January 2016, to be followed by a larger international launch later in the year. Simon Hubbert, Lombard’s CEO, stated:
The combination of Altura’s technology with our flagship AorfixTM platform creates a truly patient driven platform that we believe will allow us to capture share from our competitors. The Altura device offers a simple, safe and efficient treatment option for standard AAA anatomy, while Aorfix offers the only on-label solution for patients with Aortic neck angulation up to 90 degrees.