Lombard Medical and MicroPort Scientific Enter Strategic Partnership
December 19, 2016—Lombard Medical, Inc. and MicroPort Scientific Corporation announced a strategic partnership and a significant infusion of capital into Lombard Medical by MicroPort.
According to the companies, this partnership will allow Lombard Medical to accelerate commercialization in key global markets—China, Shanghai, and Brazil—with its Aorfix stent graft, which holds global approvals to treat abdominal aortic aneurysms (AAAs) with aortic neck angles up to 90º, and the Altura stent graft for treatment of standard AAA anatomy.
The agreement provides MicroPort with exclusive marketing rights for the Aorfix and Altura AAA stent graft product lines in China, as well as the right to a technology license to manufacture the products for the Chinese market.
Lombard Medical and MicroPort will also enter into a component supply manufacturing agreement whereby MicroPort will manufacture certain components for the Aorfix and Altura product lines in its facilities in Shanghai.
Lastly, MicroPort will also have exclusive marketing rights for both Altura and Aorfix in Brazil.
MicroPort has invested $15 million in a combination of Lombard Medical common stock and convertible debt, which includes a 29% ownership stake in Lombard Medical based on common stock currently outstanding. Lombard Medical will also appoint two representatives of MicroPort to serve on its board of five nonexecutive directors. Lombard Medical plans to use the proceeds of this investment for general corporate purposes.