ECP is developing a product that is a percutaneous, expandable catheter pump which increases blood circulation from the heart with an external drive shaft. The pump design offers a potential flow rate of up to 4.5 liters/minute, and an insertion radius for the impeller and catheter of less than 10 French. ECP holds patents or patent applications in over 40 patent families, valid with expirations up to year 2033. These patents will be added to the approximately 100 patents and patent applications from the Impella® device.
This acquisition is consistent with Abiomed's strategy to offer percutaneous hemodynamic support for minimally invasive procedures for complex treatment. Additionally, the transaction will further strengthen Abiomed's solid position in intellectual property (IP) for axial and expandable pump capabilities. The unique characteristic of the Impella pump is its ability to contain the motor and pump inside the body and be deployed via catheter.
"This acquisition of ECP will assist in augmenting our existing intellectual property," said Thorsten Siess, Chief Technology Officer of Abiomed and inventor of the Impella product. "Our goal is to continuously enhance the Impella platform with technological capabilities that best serve our customers and improve patient care."
In connection with the transaction, Abiomed has acquired all outstanding shares of ECP from Syscore GmbH for approximately $13 million in cash, with potential long-term payouts of $7 million for CE Marking approval and $8 million for achieving aggregate worldwide revenue of $125 million for products utilizing ECP patents.
In connection with the acquisition, Abiomed has also acquired through ECP, AIS GmbH Aachen Innovative Solutions for approximately $2.75 million. AIS is headquartered in Aachen, Germany and is the owner of certain IP rights related to ECP's development efforts.
"As the established leader in percutaneous heart pumps with deep relationships in cardiology, existing regulatory approvals, extensive IP, a solid pipeline and strong cash balance, this acquisition further strengthens our position as the long-term innovator and leader in the field of temporary ventricular assist devices," said Michael R. Minogue, Chairman, President and Chief Executive Officer, Abiomed.
The ECP facility in Berlin and its employees will report into the Abiomed EU headquarters located in Aachen, Germany. The Company's future plans for this acquisition, in addition to augmenting its robust patent portfolio, are to potentially integrate the ECP technology into the existing Impella platform and/or incorporate ECP capabilities into a smaller insertion device with a reusable drive shaft, as a standalone low-cost product offering.
The Company will comment on the transaction in more detail on the next quarterly earnings call scheduled for July 31, 2014.
Based in Danvers, Massachusetts, Abiomed, Inc., is a leading provider of medical devices that provide circulatory support. Our products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. For additional information please visit: www.abiomed.com
This release contains forward-looking statements, including statements regarding development of Abiomed's existing and new products, the Company's progress toward commercial growth, and future opportunities and expected regulatory approvals. The Company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including uncertainties associated with development, testing and related regulatory approvals, including the potential for future losses, complex manufacturing, high quality requirements, dependence on limited sources of supply, competition, technological change, government regulation, litigation matters, future capital needs and uncertainty of additional financing, and other risks and challenges detailed in the Company's filings with the Securities and Exchange Commission, including the most recently filed Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this release or to reflect the occurrence of unanticipated events.
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