This will complete the first phase of the Infusion business divestiture. Completion of the sale is subject to certain conditions being satisfied with the sale expected to complete in late May 2019.
Admedus generated $11 million in revenue from its ADAPT® products in 2018, and has steadily been reducing the selling, general and administration costs relative to revenue, as global sales of the ADAPT® product portfolio increases.
The spin-off of Infusion will allow the company to pursue its global growth strategy to focus the business on the commercial growth and development of ADAPT®.
Once the transaction is complete, Admedus’ headcount is expected to reduce by about 19%.
Phase I of the Infusion divestiture is part of the overall company restructuring plans that are underway.
Admedus managing director and CEO Wayne Paterson said: “The restructure will enable us to improve working capital management and reduce cash burn through reduction in headcount and focus on the ADAPT® portfolio - which is delivering revenue growth and offers significant potential for future value creation as we grow global sales and advance the TAVR device into human clinical trials.”