Dive Brief:
- Artivion has completed its takeover of Endospan, paying $131.3 million upfront to acquire the recently approved Nexus Aortic Arch System.
- The deal includes the upfront fee, which reflects a $175 million purchase price minus earlier loans, and up to $200 million in payments tied to commercial success over the next two years.
- Artivion has identified a $150 million annual U.S. addressable market for Nexus, which slots into a portfolio that already features two treatments for aortic arch conditions.
Dive Insight:
In 2019, Artivion, working through a wholly owned subsidiary, paid $9 million to distribute Endospan’s Nexus in parts of Europe. Artivion also loaned Endospan up to $15 million and secured an option to buy the company within 90 days of the Food and Drug Administration approving Nexus. The companies changed the deal in 2024, including by lowering the upfront fee for exercising the option.
Endospan received premarket approval for Nexus in April. The approval covers the use of the branched endovascular stent graft system for the minimally invasive treatment of aortic arch disease.
A cross-trial comparison suggests the minimally invasive, off-the-shelf Nexus may improve outcomes. In a one-year analysis of clinical trial data, Endospan reported 93% patient survival from lesion-related death, 90% freedom from disabling stroke and 95% freedom from reintervention due to endoleaks.
Artivion plans to launch Nexus in the U.S. in January, CEO Pat Mackin said on an earnings call this month. In the months leading up to the launch, Artivion will seek value analysis committee approvals, build inventory and hire clinical specialists, Mackin said. The company’s sales reps will initially target about 100 high-volume accounts.
W. L. Gore & Associates’ medical business received an expanded FDA approval for its minimally invasive, off-the-shelf treatment for aortic arch lesions last year. Gore, which won an initial approval in 2022, is marketing the device as an alternative to total open surgical repair.
