Abbott (NYSE:ABT) is slated to pay $25 million upfront for the global commercialization rights to Surmodics‘ (NSDQ:SRDX) SurVeil drug-coated balloon, the companies announced today.
The company’s drug-device combo, which is in pivotal trials in the U.S., is designed to treat peripheral artery disease in the superficial femoral artery. According to the deal, Abbott could also negotiate agreements for Surmodics’ below-the-knee and arteriovenous fistula drug-coated balloons, which are still in pre-clinical development.
The two companies plan to work together to finish developing the SurVeil balloon and land regulatory approval in the U.S. and Europe. Surmodics could earn an additional $67 million in milestone payments, according to the agreement.
Surmodics’ SurVeil drug-coated balloon adds to Abbott’s portfolio of vascular devices designed to treat peripheral artery diseases.
“Abbott is committed to providing leading treatments for people with peripheral artery disease, and the SurVeil drug-coated balloon is a next-generation device that utilizes best-in-class technology,” Chuck Brynelsen, SVP of Abbott’s vascular business, said in prepared remarks. “This agreement enhances our fast-growing endovascular portfolio, and we look forward to offering this solution to physicians to give them more and better options to help their patients live their fullest lives.”
“The SurVeil drug-coated balloon is the first device developed by Surmodics that combines our proprietary drug-delivery and surface technologies with our exceptional design, development and manufacturing capabilities,” Surmodics president & CEO Gary Maharaj added.
“We are excited to enter this partnership with Abbott given its deep expertise in vascular care products and its worldwide strength in the market. We look forward to working together with Abbott to realize the full potential of our SurVeil drug-coated balloon to help people with peripheral artery disease.”
SRDX shares soared more than 10% in morning activity today, trading at $30.15 apiece.
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