Endospan, an innovative Israeli-based Aortic Arch medical device company, secures a $25 million financing from CryoLife [NYSE:CRY].
Clipperton acted as sole financial advisor to Endospan
- CryoLife will acquire the European distribution rights for NEXUS aortic arch graft stent and an option to purchase Endospan for a total upfront payment of $10 million, plus up to $15 million in debt financing to support U.S. clinical trials required for NEXUS’ FDA approval
- CryoLife will benefit from a purchase option on Endospan for a total consideration of $350 milllion and up to an additional $100 million based upon commercial success of NEXUS
- This transaction highlights Clipperton expertise in cross-border transactions after a series of completed deals within the last 12 months – e.g. NetRange (DE) /Access Co (JP), Musement (IT) / TUI (DE), Vide Dressing (FR) /Adevinta (NO), Givve (DE) / Up Group (FR), Matooma (FR) / Wireless Logic Group (UK).
Paris, 2019 – Leading European technology investment bank Clipperton is pleased to announce that it acted as sole financial advisor to Endospan on its financing with purchase option to CryoLife [NYSE:CRY]. Endospan is an Israeli-based, privately-held developer of NEXUS™, the first approved branched endovascular system to treat aortic arch disease, transforming a complex surgical aortic arch repair into a standard endovascular procedure. The addition of NEXUS to CryoLife’s highly differentiated branched aortic stent graft portfolio further strengthens the Company’s position as a leader in the growing aortic repair market.
Aortic arch disease includes both aortic aneurysms and aortic dissections, which occur suddenly and usually without warning. Approximately 120,000 patients suffer thoracic aortic arch disease annually in the US and Europe, but only about 30,000 receive treatment.
CryoLife will pay a total upfront payment of $10 million. Additionally, CryoLife will provide up to $15 million in debt financing to Endospan subject to progress on the US clinical development program for the Nexus Stent Graft System.
Under the purchase option, CryoLife has the right to acquire Endospan at any time until 90 days after receiving notice of U.S. FDA approval of the NEXUS stent graft system for a total consideration of $250 million, plus a guaranteed $100 million payment and up to an additional $100 million based upon commercial success of NEXUS in the first year post-option exercise.
“We believe the addition of NEXUS to our product offerings will make a meaningful contribution to our future growth as it gives us immediate access to the $150 million EU market and has the potential to expand our addressable market by over $800 million,” said Pat Mackin, Chairman, President, and Chief Executive Officer of CryoLife. “NEXUS is another highly differentiated device that, when included in our European channel, further solidifies our position as a global leader in aortic repair, as it strengthens our highly competitive product portfolio in Europe. As we gain experience with NEXUS over the next few years, we may elect to further capitalize on this opportunity with our option to purchase Endospan.”
Kevin Mayberry, Chief Executive Officer of Endospan, commented, “CryoLife is ideally positioned to accelerate the adoption of NEXUS in Europe through its experienced direct sales force focused on aortic repair and its complementary JOTEC product portfolio. Additionally, the funding supplied through the distribution and credit facility provides us with the working capital needed to support operations in Europe, as well as to complete the U.S. FDA approval process, which we currently anticipate being completed in approximately five years.”
Commenting on the transaction, Nicolas von Bülow, Managing Partner of Clipperton said: “We are proud to have advised Endospan on this landmark Medtech financing. The transaction highlights Clipperton’s commitment in advising innovative companies in ambitious landscapes such as Medtech. It also demonstrates our expertise in cross-border M&A transactions after a series of completed deals within the last 12 months – e.g. NetRange (DE) /Access Co (JP), Musement (IT) / TUI (DE), Vide Dressing (FR) /Adevinta (NO), Givve (DE) / Up Group (FR), Matooma (FR) / Wireless Logic Group (UK).”
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Privately held Endospan, headquartered in Herzlia (Tel Aviv), Israel, is a pioneer in the endovascular repair of Aortic Arch Disease including aneurysms and dissections. Endospan has received CE-Mark to commercialize in Europe the NEXUS™ Stent Graft System, the first endovascular off-the shelf system to treat Aortic Arch Disease which affects a greatly underserved group of patients diagnosed with a dilative lesion in, or near, the aortic arch. While minimally invasive endovascular repair has been the standard of care for Abdominal Aortic Aneurysm (AAA), Aortic Arch Disease patients with aneurysms or dissections have not been as fortunate and have had little choice but to undergo open-chest surgery with its invasiveness and risks, lengthy hospitalization periods, and prolonged recuperation. For additional information about Endospan, visit: www.endospan.com.
Headquartered in suburban Atlanta, Georgia, CryoLife is a leader in the manufacturing, processing, and distribution of medical devices and implantable tissues used in cardiac and vascular surgical procedures focused on aortic repair. CryoLife markets and sells products in more than 100 countries worldwide. For additional information about CryoLife, visit: www.cryoLife.com.
Clipperton is a European independent corporate finance advisory firm exclusively dedicated to the Technology space, advising high growth companies on M&A transactions, debt financings and equity offerings. With offices in London, Berlin, and Paris and an international reach, Clipperton is a European leader in Technology financial advisory. Over the past 17 years, the team has successfully completed more than 300 high profile transactions globally.