Lombard Medical Completes Restructuring and Implements Strategic Plan

September 13, 2017—Lombard Medical, Inc. announced completion of a restructuring program after implementing its new strategy to focus sales efforts in the United Kingdom, Japan, and China and reduce operating and manufacturing costs to achieve cash flow breakeven in the near term. The restructuring program is anticipated to result in a reduction of nearly $12 million in operating expenses in 2018 when compared to 2016 expenditure levels, a reduction of more than 50%.

In August 2016, Lombard Medical, a United Kingdom–based developer, manufacturer, and marketer of endovascular aortic aneurysm repair products, announced a significant operational restructuring, as well as an exploration of strategic alternatives. The company discontinued the funding of commercial operations in the United States to solely focus resources on Europe, Japan, and other key international markets.

The company advised that it continues to sell on a direct basis in the United Kingdom. In Japan, Lombard sells via its distribution partner, Medico’s Hirata. The company plans to expand into additional international markets in the second half of 2018.

In April 2017, Lombard Medical and MicroPort Scientific Corporation announced that the companies finalized definitive agreements for a strategic partnership, which is focused on gaining regulatory approval from the China Food and Drug Administration for Lombard’s endovascular portfolio and achieving a significant reduction in material and labor costs. The parties have undertaken several collaborative initiatives and cost-saving projects, and Lombard anticipates it will achieve industry standard gross margins within the next 24 months.

The companies intend to launch Lombard's abdominal aortic aneurysm products in China, distributed by MicroPort, following regulatory approvals that are currently anticipated before the end of 2018.