This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

LeMaitre Vascular To Acquire XenoSure Rights For $4.6mm

Stocks in this article: LMAT

BURLINGTON, Mass., Oct. 1, 2012 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of peripheral vascular devices and implants, announced today that it has signed an agreement to acquire the manufacturing and distribution rights to XenoSure® from Neovasc, Inc. on October 31, 2012 for $4.6mm, subject to standard closing conditions. XenoSure is a bovine pericardium patch used primarily for carotid and vascular reconstructions. As part of the transaction, the two parties have also signed a back-up supply agreement to assure product availability during the manufacturing transfer. LeMaitre Vascular (the "Company") recorded XenoSure revenues of $4.5mm in the twelve months ending September 30, 2012 vs. $2.8mm in the prior 12-month period, a 61% increase.   

In January 2009 the Company became the exclusive U.S. vascular distributor of XenoSure, inheriting sales of approximately $600,000 per year. Since then, the Company has secured exclusive worldwide distribution rights and is now selling the implant through its direct sales force in the US, Europe and Canada. The original distribution agreement was to have expired in January 2016, while the exclusive acquisition option period was to have begun in January 2014.   LeMaitre Vascular owns the XenoSure trademark.

Neovasc retains the right to process and distribute bovine pericardium for all other applications that do not compete directly with the Xenosure vascular surgical patch business.

"We look forward to acquiring this high-growth product 14 months ahead of schedule, allowing us to secure manufacturing and distribution rights. Following the manufacturing transfer, we expect our XenoSure gross margin will improve from approximately 50% to 65%. In addition, this option exercise will enable us to extend and enhance the product line," said David B. Roberts, President of LeMaitre Vascular.

Business Outlook

During the manufacturing transfer, the Company expects $300,000 of incremental expenses in Q4 2012 and $600,000 in 2013. Beginning in 2014, the transaction is expected to be accretive to operating income by approximately $1.0mm a year, growing at the same rate as XenoSure's sales.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,088.05 +57.84 0.32%
S&P 500 2,089.61 +7.73 0.37%
NASDAQ 4,796.5270 +23.0550 0.48%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs