AngioDynamics Boosts VIT Product Portfolio With New Buyout
Zacks Investment Research | Oct 07, 2019 10:04PM ET
AngioDynamics, Inc. (NASDAQ:ANGO) recently acquired Eximo Medical Ltd. – an early commercial stage medical device company – and its proprietary 355nm wavelength laser-technology platform. Notably, Eximo’s proprietary laser technology will ably complement AngioDynamics’ existing Vascular Interventions and Therapies (VIT) product portfolio.
For investors’ notice, Eximo’s proprietary laser technology has received 510 (k) clearance with respect to the treatment of Peripheral Artery Disease (PAD). The technology is a significant breakthrough among medical devices used in atherectomy procedures to treat PAD currently. Notably, this technology is the only system that has the ability to deliver short, high-powered pulsed-laser energy in 355nm wavelength without compromising the integrity of its fiber optic cables during atherectomy procedures.
Financial Details of the Acquisition
AngioDynamics made the acquisition with $46 million in up-front consideration, with up to $20 million of contingent consideration related to certain technical and revenue milestones. The transaction is being funded exclusively in cash.
Benefits of the Deal
Eximo’s excellent and foundational technology will enhance AngioDyanamic’s portfolio, which will change the way patients with PAD receive treatment.
Further, the buyout will enable AngioDyanmics to foray into a growing and lucrative market (valued at more than $500 million) with an innovative medical solution providing much more versatility, broad array of treatments and robust clinical data to support its efficiency.
Interestingly, this proprietary technology complements AngioDynamics’ leading thrombus management and venous insufficiency technologies.
Speaking of the expansion of AngioDyanamics’ VIT product portfolio, in the fiscal first-quarter 2020, VIT revenues grossed $28.9 million, up 1.1% from the prior-year quarter’s figure. Per management, strong growth in AngioVac and Thrombolytic product line drove revenues.
Other Acquisitions
AngioDynamics continues to expand presence on the back of acquisitions and strategic alliances. The company recently concluded its acquisition of RadiaDyne, a privately held medical diagnostic and device company with two different product lines. It is expected to aid AngioDynamics radiation portfolio. Notably, the buyouts of BioSentry and RadiaDyne have proven to be accretive for AngioDynamics’ Oncology business in recent times.
Market Prospects
Per a report by Zacks Investment Research
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