Admedus Ltd (ASX:AHZ) has sold part of its Infusion business to BTC Health Ltd (ASX:BTC) subsidiary BTC Specialty Health Pty Ltd for $6.3 million.
The two companies entered a business sale agreement in mid-May and all conditions under the sale agreement have been satisfied with no waivers granted.
The purchase price of $6.3 million includes $1.75 million of working capital, made up of inventory and debtors.
Included in the acquisition is the novation of an eight-year exclusive distribution agreement with Summit Medical Products for the ambIT® range of infusion pumps in Australia and New Zealand.
It also includes transfer of ten Infusion sales employees to BTC, including current Infusion business unit head Glenn Gilchrist, and the purchase of saleable inventory.
READ: Admedus divesting non-core business to focus on ADAPT product portfolio
The Infusion spin-off will allow Admedus to pursue its global growth strategy focusing on the commercial growth and development of ADAPT®.
Admedus generated $11 million in revenue from its ADAPT® products last year and has steadily reduced the selling, general and administration costs relative to revenue.
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Speaking to Proactive in March, Admedus president & CEO Wayne Paterson said one of the key attributes of Admedus and ADAPT® technology was its non-calcification.
He said: “What that means simply is that it has longevity and durability, proven way beyond anything else out there.
“With the data coming in that shows younger patients are getting these, those valves therefore need to last longer.
“It’s a perfect storm for the Admedus TAVR (transcatheter aortic valve replacement) to slot straight into the middle of.”
READ: Admedus delivers results with heart-driven corporate strategy
ADAPT® is the medical technology company’s key asset, invented by leading research and development pioneer Professor Leon Neethling, Admedus’ cardiovascular science vice president.
Mostly used in valve repairs, ADAPT® biomaterial scaffolds are notably resistant to calcification, based on more than nine years of data.
The resistance bodes well for valve repairs in younger patients, with Admedus looking to grow its revenue base in the adult valve repair market.