AngioDynamics Reports Oncology/Surgery Division Developments
U.S. distribution contract for LC Beads™ to expire on December 31, 2011
FDA approves IDE for NanoKnife® System study in prostate cancer
Company expects to submit IDE for NanoKnife System study in pancreatic cancer by mid-June
Oncology/Surgery division to enhance focus on NanoKnife, and core ablation and surgical resection products
ALBANY, N.Y.--(BUSINESS WIRE)-- AngioDynamics (NASDAQ:ANGO - News), a leading provider of innovative, minimally invasive medical devices for vascular access, surgery, peripheral vascular disease and oncology, today reported several developments in its Oncology/Surgery division.
After several months of discussions, AngioDynamics has concluded negotiations with BTG (LSE:BGC.l - News) concerning a possible extension of its distribution agreement for the LC Bead™ embolization product. As a result, the Company will not distribute LC Beads in the U.S. beyond the agreement’s December 31, 2011 expiration date. The LC Bead product line represented approximately 13% of AngioDynamics’ net sales through the first nine months of fiscal 2011. Following the conclusion of the distribution agreement, AngioDynamics’ Oncology/Surgery division will increase its focus on the global growth opportunities of its high-margin NanoKnife products and programs, and radio frequency ablation and surgical resection devices. In addition, the Company continues to pursue M&A transactions that would provide the Oncology/Surgery and Vascular sales forces with additional products and services to offer customers.
“Our success with the LC Bead product over the past five years demonstrates the strength and capabilities of our U.S. Oncology/Surgery sales team,” said Jan Keltjens, President and Chief Executive Officer. “With the expiration of the distribution arrangement, we have an opportunity to focus our Oncology/Surgery division on developing and commercializing our fastest growing product line and single largest growth opportunity, the NanoKnife System. In addition, we will increase our attention on our ablation and surgical resection products. At the same time, our strong balance sheet and strong operating cash flow provide significant resources to acquire products or companies in the Oncology/Surgery, as well as Vascular, space which would provide our strong sales teams with additional growth opportunities. Despite the loss of LC Bead revenue in the second half of fiscal 2012, our team is focused on implementing strategies designed to drive overall top- and bottom-line long-term growth in the next fiscal year.”
NanoKnife Clinical Progress
The U.S. Food & Drug Administration (FDA) has granted Investigational Device Exemption (IDE) approval for the NanoKnife System, allowing AngioDynamics to conduct a clinical study of the NanoKnife System for the ablation of low risk, localized prostate cancer. The FDA approval is for an initial study of a total of six patients at up to three sites in the U.S., which will provide the basis for additional clinical trials. Additionally, the Company expects to submit an IDE application to the FDA for a clinical study of the use of the NanoKnife System in pancreatic cancer by mid-June 2011. |
