Endologix to Acquire Nellix

October 27, 2010—Endologix, Inc. (Irvine, CA) announced that it has signed a definitive agreement to acquire Nellix, Inc. (Palo Alto, CA), which has developed an endograft for the treatment of abdominal aortic aneurysms (AAAs).


As described in the announcement, the Nellix platform completely seals and fills the AAA sac, with the goals of preventing device migration and potentially improving clinical outcomes. The device can treat a wide range of aortic anatomies, including those that are outside of the indications for existing endovascular aortic repair devices, such as aortic neck lengths of 5 mm or less, widths up to 34 mm, and iliac aneurysm diameters > 23 mm. Initial clinical results from patients with up to 2 years follow-up have shown 100% implant success, 100% freedom from AAA-related mortality, no aneurysm ruptures, no surgical conversions, and no stent graft migrations, stated the company.


Endologix will acquire Nellix for $15 million in stock at closing, plus additional milestone-based, stock payments of up to $39 million. The agreement also includes a commitment for a $15
 million equity investment in Endologix from Essex Woodlands Health Ventures, the majority shareholder of Nellix. Endologix anticipates that the closing of the transactions will occur in the fourth quarter of 2010, subject to approval of the Endologix stockholders and other customary closing conditions.

The company plans to launch the Nellix system in Europe in 2012. It will use the $15 million investment to support the transition and development of the Nellix technology, to build a direct sales force in Europe, and to initiate a clinical trial in the United States under an investigational device exemption.