CryoCath Sells Surgical Portfolio to ATS Medical for $22M
June 19, 2007 - CryoCath Technologies Inc., a cryotherapy products company that treats cardiac arrhythmias, today announced an agreement to sell their surgical portfolio to ATS Medical in a $22 million cash transaction, to enable CryoCath to focus on its line of electrophysiology products for treating atrial fibrillation and other arrhythmias, and to augment ATS’s current cardiac surgery portfolio.
CryoCath’s surgical products are defined as its line of argon-based cardiac surgical cryoablation devices. Under the terms of the agreement, CryoCath will receive $22 million cash at closing, $2 million upon the achievement of certain manufacturing transition milestones, $2 million two years after closing and up to $4 million based on future sales of SurgiFrost XL, planned for commercial release in the second half of 2007.
"The sale of our surgical business marks a significant milestone in our strategy to transition CryoCath into a focused and fast growing electrophysiology cryoablation company," said Jan Keltjens, president and CEO of CryoCath. "It also advances CryoCath towards the accomplishment of two core goals. First, we now have a clear financial pathway to the U.S. approval and launch of Arctic Front, our flagship product targeting the US$2 billion atrial fibrillation opportunity. Secondly, we can focus to achieve rapid, profitable growth in Europe for our EP-Afib business. Due to this increased focus as well as the non-dilutive nature of the financing, we believe this transaction creates great value for our shareholders."
For more information: www.cryocath.com