Biotech Values

[DewDiligence]

SRDX +17% on ABT collaboration for drug-coated balloon:

https://finance.yahoo.com/news/abbott-surmodics-announce-agreement-next-140000014.html

Abbott and Surmodics today announced that the companies have entered into an agreement whereby Abbott will have exclusive worldwide commercialization rights for Surmodics' SurVeil drug-coated balloon to treat the superficial femoral artery, which is currently being evaluated in a U.S. pivotal clinical trial.

Separately, Abbott also received options to negotiate agreements for Surmodics' below-the-knee and arteriovenous (AV) fistula drug-coated balloon products, which are currently in pre-clinical development.

As part of the agreement, Surmodics, a leading provider of medical device and in vitro diagnostic technologies to the healthcare industry, will supply the SurVeil drug-coated balloon to Abbott. The two companies will collaborate on product development, clinical trials and regulatory activities to obtain marketing approval in the U.S. and Europe.

…Pursuant to the terms of the agreement, Surmodics will receive a $25 million upfront payment and may earn an additional $67 million for various product development milestones. Upon the regulatory approval of the device, Surmodics will be responsible for the manufacture and supply of clinical and commercial quantities of the product and will realize revenue based on initial product sales to Abbott as well as a share of profits resulting from third-party sales.

SRDX made the sirolimus coating and proprietary dissolution polymer for JNJ’s (now defunct) Cypher coronary stent, which was the market-leading DES about 15 years ago (until competition from BSX and others arrived). SRDX never managed to produce another big hit, but SurVeil could be the opportunity to so do.