QT Vascular to sell coronary assets to Teleflex

 Medical firm QT Vascular is selling the intellectual property rights to its non-drug-coated coronary products, including Chocolate XD and Glider.

The proposed sale agreement is with Teleflex Life Sciences Unlimited Company and New Yorklisted Teleflex Incorporated.

It also provides Teleflex with an option to buy the drug-coated coronary balloon catheter, known as Chocolate Heart, which is under development. The total consideration is $98.4 million in cash – $26.2 million for the non-coated coronary products, $65.6 million for the coated coronary product and up to $6.6 million in payments upon the achievement of certain revenue milestones from the sales of the non-coated products by Teleflex.

QT Vascular said the value of the deal far exceeds the firm’s market capitalisation of $36.3 million as at May 23. It said the proposed sale represents an “attractive opportunity” for the group to realise the value of its products. It will also strengthen its balance sheet. It will also enter several agreements with Teleflex, like supply contracts to manufacture and supply non-coated and coated coronary products. The royalties it is entitled to receive from Teleflex means the value of the transaction to the firm is expected to exceed $100 million.

QT Vascular shares closed down 0.1 cent or 5.6 per cent at 1.7 cents yesterday. Trading was halted before the market opened and on Thursday,resumed after the announcement.

A version of this article appeared in the print edition of The Straits Times on May 25, 2018, with the headline 'QT Vascular to sell coronary assets to Teleflex'. Print Edition | Subscribe