Vitrolife acquires licensing rights to technology for embryo transfer
Vitrolife AB (publ) has acquired exclusive global licensing rights in the IVF field regarding a technology that can be used for embryo transfer in connection with IVF treatments. Vitrolife intends to commercialise the technology by marketing a unique embryo transfer catheter.
Vitrolife estimates that worldwide approximately 2.5 million transfers of embryos to women are carried out each year in connection with IVF treatments and that for this purpose approximately 3 million embryo transfer catheters are used. The global market for embryo transfer catheters is estimated to be approximately SEK 500 million. For some patients embryo transfer is without complications while it is more complicated for other patients. This can be due the patient’s anatomy, amongst other things. A complicated embryo transfer can entail a reduced chance of pregnancy, increased suffering for the patient and increased costs for the clinic in terms of hours worked. CrossBay Medical Inc. has developed and patented a balloon technology that can easily pass through difficult areas. On the basis of this technology CrossBay has developed an embryo transfer catheter which is approved by the FDA and CE-marked, with the aim of making all transfers uncomplicated and standardised. The product has not yet been launched on the market. Vitrolife intends to launch low volumes of the product during the second half of the year in selected markets, amongst other things with a view to collecting customer data on the product’s advantages at the same time as preparations take place, for example for high volume production.
“The acquisition broadens the product range and supports Vitrolife’s ambition to offer IVF clinics the most effective products in its efforts to assist patients’ desire to have children,” says Thomas Axelsson, CEO of Vitrolife. “Vitrolife, with its global market presence and ambition to develop the IVF field, is the right partner to commercialise the technology,” says Piush Vidyarthi, CEO of CrossBay.
The initial purchase price amounted to USD 5 million. The purchase price was paid in cash and was financed by available cash balances. In addition to this initial purchase price, additional purchase prices and royalties may be paid in relation to sales. The acquisition is expected to impact EBITDA per share marginally negatively during 2018-2020 and positively as from 2021.
January 11, 2018
VITROLIFE AB (publ)
Thomas Axelsson, CEO
Queries should be addressed to:
Thomas Axelsson, CEO, tel 46 31 721 80 01
Mikael Engblom, CFO, tel 46 31 721 80 14
This information is information that Vitrolife AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 am CET on January 11, 2018.
This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.
Vitrolife is an international medical device Group. Vitrolife develops, produces and markets medical devices for assisted reproduction. Work is also carried out to enable the use and handling of stem cells for therapeutic purposes.
Vitrolife has approximately 370 employees and the company's products are sold in about 110 markets. The company is headquartered in Gothenburg, Sweden, and there are also offices in Australia, Belgium, China, Denmark, France, Germany, Italy, Japan, United Kingdom and USA. The Vitrolife share is listed on NASDAQ Stockholm.
Vitrolife AB (publ), Box 9080, SE-400 92 Göteborg, Sweden. Corporate identity number 556354-3452. Tel: 46 31 721 80 00. Fax: 46 31 721 80 99. E-mail: email@example.com. Website: www.vitrolife.com/