Endologix, Inc. (Nasdaq: ELGX), developer and marketer of minimally invasive treatments for aortic disorders, and LeMaitre Vascular, Inc. (Nasdaq: LMAT), provider of peripheral vascular devices and implants, announced today that the companies have entered into an early termination agreement for LeMaitre's distribution rights of Endologix's aortic endovascular products in Europe.
Under the terms of the agreement, Endologix will pay LeMaitre $1.3 million to begin selling direct on September 1, 2011. Previously, LeMaitre held distribution rights in certain European countries for Endologix's Powerlink® System, and related products, through June 30, 2013.
John McDermott, President and Chief Executive Officer of Endologix, commented, "This agreement allows us to accelerate our planned transition to a direct sales force in Europe and gain control of the sales channel at an important time in the development of our European business. It provides us with the opportunity to begin establishing a presence and developing physician relationships ahead of the anticipated European launch of our Nellix® Endovascular System and Ventana™ Fenestrated Stent Graft System in 2012. Both organizations are committed to a smooth transition and we would like to thank LeMaitre for their partnership over the past few years."
Mr. McDermott continued, "Importantly, we expect that this agreement will have no impact on our full year revenue guidance and continue to expect full year 2011 revenues of $78 million to $82 million. We will provide additional details during our upcoming second quarter 2011 financial results conference call scheduled for Thursday, July 21, 2011."
LeMaitre Vascular also announced that it has divested its TAArget and UniFit stent graft product lines to Duke Vascular, Inc. for an undisclosed amount and the assumption of certain related liabilities.
George W. LeMaitre, Chairman and Chief Executive Officer of LeMaitre, said, "These two transactions mark our exit from the stent graft market, which will allow us to focus on our own core vascular products, where we believe our sales force can drive the most value. We expect that the outcome will eventually be a leaner, faster-growing organization. These transactions will also help offset some of the restructuring payments and charges that we have incurred in recent quarters. We will provide further details and the impact on our financial guidance in our second quarter conference call scheduled for Thursday, July 28, 2011."
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