AngioDyanamic's NanoKnife system (pictured here) is one of the technologies it is looking to concentrate more on developing. (Photo courtesy of AngioDynamics)
AngioDyanmics, a manufacturer of medical solutions that stabilize blood flow in the body’s vascular system and provide cancer treatment, has sold off its peripherally-inserted central catheters (PICC) and Midline catheter product portfolios to Spectrum Vascular for up to $45 million in cash.
In addition, the company has discontinued sales for its Uniblate for scaled ablations with CT gantry compatibility, Starburst Radio Frequency products for liver lesions, and Syntrax support catheters. It says these changes will help it streamline its portfolio and focus more on its NanoKnife, Mechanical Thrombectomy, and Auryon businesses.
“Today’s divestiture is another significant milestone in our transformation and supports our focus on driving increased penetration of our Med Tech platforms in high-growth markets. It builds upon the divestiture of our Dialysis and Biosentry businesses that we announced in June as well as the plan we announced in January to streamline our manufacturing operations,” said Jim Clemmer, president and chief executive officer of AngioDynamics, in a statement.
The products sold made AngioDyanmics approximately $43.5 million in annual sales in 2023. Spectrum Vascular has already paid $34.5 million and will pay $5.5 million over the next two years, and a milestone payment of $5 million following the final transfer of the manufacturing of the divested products to a third-party manufacturer. The discontinued lines earned approximately $5.5 million in annual sales in 2023.
Together, the sale and discontinuations will reduce full-year fiscal 2024 revenue by approximately $50 million and eliminate certain sales, marketing, and operational expenses. They will be accretive to full-year fiscal 2024 gross margin and the transaction will be slightly dilutive to fiscal 2024 adjusted earnings per share.
UBS Investment Bank is the financial advisor, and Cadwalader, Wickersham & Taft is the legal advisor to AngioDynamics for the sale. Fried Frank is the legal advisor to Spectrum Vascular.
