Kensey Nash Corp. (KNSY), a medical technology company that provides solutions and technologies for a variety of medical procedures, has entered into a definitive agreement with Spectranetics Corporation. Under the agreement, the company will sell its endovascular business, including the ThromCat™, QuickCat™ and Safecross™ products, to Spectranetics. Spectranetics manufactures and sells the only excimer laser approved in the United States, Europe and Japan for use in multiple, minimally invasive cardiovascular procedures.
Kensey Nash will receive up to $24M consisting of a $10M initial cash payment, $8.0M in future product development milestone payments, and a $6.0M milestone associated with cumulative sales. Additionally, the company will receive royalties on future sales of the ThromCat™ and SafeCross™ products upon the transfer of product manufacturing to Spectranetics. There will be no royalty payments related to future sales of the QuickCat product.
The agreement specifies that Kensey Nash will manufacture the ThromCat and SafeCross products for Spectranetics for an initial three-year period. The QuickCat product will be manufactured by the company for a six month minimum. Worldwide sales and marketing of all endovascular products will be the responsibility of Spectranetics. The transaction is expected to close by June 30, 2008.
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