The Medical Technology Blog

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Welcome back to the Medical Technology Blog. Apologies for the lack of posts, but i’ve been off work with the dreaded ‘manflu’. As i didn’t fancy sneeezing my germs round the office I took the week out, today’s post involves company news, please read on…

Irvine, CA-based Endologix, focused on the development and marketing of its patented Powerlink technology for the treatment of abdominal aortic aneurysms (AAAs), has made a move to acquire fellow AAA-focused company, Nellix. The deal values Nellix for US$15 million in stock at closing, plus additional milestone-based stock payments of up to US$39 million. The acquisition, expected to be complete in the fourth quarter of 2010, also comes with a US$15 million equity investment in Endologix from Essex Woodlands Health Ventures, the majority shareholder of Nellix.

Privately-held Nellix has developed a device that is designed to address and expand the indication for the less-invasive treatment of AAAs and thoracic aortic aneurysms (TAAs). Enabling the treatment of all aneurysms with a low-profile delivery system and endograft, the Nellix device is said to have the potential to double the market size for endovascular aneurysms repair (EVAR), which exceeded US$800 million in 2008. It is forecasted that the AAA market could exceed US$1.7 billion by 2012.

AAA is a weakening of the aorta wall, resulting in a balloon-like enlargement. Once AAA develops, it continues to enlarge and, if left untreated, can become increasingly susceptible to rupture. The overall patient mortality rate for ruptured AAA is approximately 75 per cent, making it a leading cause of death in the US.

Nellix’ technology platform seals and fills an aortic aneurysm sac, preventing device migration and potentially improving clinical outcomes. This enables the product to treat a wide range of AAA anatomies, including those that are outside of the indications for existing EVAR devices, including patients with aortic neck lengths of 5mm or less, widths as wide as 34mms, and patients with iliac aneurysm diameters >23mm.

Endologix is clearly a fan of Nellix as the company’s President and CEO referred to Nellix as the ‘most revolutionary EVAR technology in the world’, which is expected to help position Endologix as a leader in aortic aneurysm treatment. In the near future, the company plans to devote resources to build a direct salesforce in Europe, which will provide a channel to launch the Nellix system in the region from 2012 and provide a significant growth opportunity for Endologix’ existing and future products. In addition, the fresh capital from Essex Woodlands will be used to support the transition and development of Nellix’ technology in anticipation of a full commercial European release in 2012. The capital will also be used to build a direct salesforce in Europe and initiate the IDE clinical trial programme in the US.

This article was provided by Sophie Sanderson, editor of Espicom’s fortnightly updated newsletter, Cardiovascular Device Business if you liked this article please click on the link to start your subscription, and you might also like to take a look at Medical Industy Week.

Thanks for reading, kind regards, Paul

Espicom Business Intelligence

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