Sunshine Heart Announces Strategic Acquisition of Aquadex Product Line from Baxter and a new credit facility with Silicon Valley Bank
(Thomson Reuters ONE) -
EDEN PRAIRIE, Minn., Aug. 08, 2016 (GLOBE NEWSWIRE) -- Sunshine Heart, Inc.
(NASDAQ:SSH) announced it has acquired the Aquadex product line from an indirect
subsidiary of Baxter International Inc. (NYSE:BAX), a global leader in the
hospital products and dialysis markets. The Aquadex system is indicated for
temporary (up to eight hours) ultrafiltration treatment of patients with fluid
overload who have failed diuretic therapy, and extended (longer than 8 hours)
ultrafiltration treatment of patients with fluid overload who have failed
diuretic therapy and require hospitalization.
"Aquadex is an important strategic investment, which allows Sunshine Heart to
strengthen our presence in the heart failure market," said John Erb, Sunshine's
Chairman and CEO. "We believe Aquadex is a valuable and highly complementary
technology to our expanding heart failure product portfolio. There is a real
need for fluid management in patients both before and following any kind of
heart failure procedure. Aquadex is used to treat fluid overload in congestive
heart failure patients and can help reduce the length of stay while in the
hospital and the number of hospital visits in total."
Under the terms of the agreement, Baxter received $4.0 million in cash and 1.0
million shares of Sunshine Heart common stock. "This is a financially attractive
transaction as well," said Mr. Erb. "We expect this product line to be accretive
in the first year with a relatively quick payback period. We plan to
strategically leverage our current team of clinical specialists to directly
support the existing base of Aquadex customers."
In connection with the acquisition of this product line, the Company repaid all
amounts outstanding under its existing debt facility with Silicon Valley Bank
and entered into a new $5.0 million facility to finance future working capital
needs. Advances under the facility are subject to various conditions precedent,
including compliance with financial covenants, which the Company does not
currently meet. "This strategic acquisition will allow Sunshine Heart to further
drive important advancements to heart failure treatment," said Ben Johnson,
Managing Director of Silicon Valley Bank. "We're excited to provide the
financing to support the company as it matures to the next phase of
development."
Rx Only. All treatments must be administered by a healthcare provider, under
physician prescription, both of whom having received training in extracorporeal
therapies
About Sunshine Heart
Sunshine Heart, Inc. (Nasdaq:SSH) is an early-stage medical device company
focused on developing a product portfolio to treat moderate to severe heart
failure and related conditions. Our objective is to improve the quality of life
for heart failure patients and halt the disease progression. Sunshine Heart is
a Delaware corporation headquartered in Minneapolis with wholly owned
subsidiaries in Australia and Ireland. The Company has been listed on the NASDAQ
Capital Market since February 2012.
About Silicon Valley Bank
For more than 30 years, Silicon Valley Bank (SVB) has helped innovative
companies and their investors move bold ideas forward, fast. SVB provides
targeted financial services and expertise through its offices in innovation
centers around the world. With commercial, international and private banking
services, SVB helps address the unique needs of innovators. Learn more
at svb.com.
Forward-Looking Statements
Certain statements in this release are forward-looking statements that are based
on management's beliefs, assumptions, expectations, and information currently
available to management. All statements that address future operating
performance, events or developments that we expect or anticipate will occur in
the future are forward-looking statements, including without limitation,
clinical and pre-clinical study designs and activities, expected timing for
initiation, enrollment and completion of clinical trials, research and
development activities, ultimate clinical outcomes and benefits of our products
to patients, design and development of future studies, site activations,
patient enrollment in studies, timing of regulatory filings and approvals,
regulatory acceptance of our filings, our expectations with respect to product
development and commercialization efforts, market and physician acceptance of
our products, intellectual property protection, our ability to integrate
acquired businesses, our expectations regarding anticipated synergies with and
benefits from acquired businesses, and potentially competitive product
offerings. The risk factors described in our filings with the SEC could cause
actual events to adversely differ from the expectations indicated in these
forward-looking statements. Management believes that these forward-looking
statements are reasonable as and when made. However, you should not place undue
reliance on forward-looking statements because they speak only as of the date
when made. Sunshine Heart does not assume any obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise. Sunshine Heart may not actually achieve the plans,
projections or expectations disclosed in forward-looking statements, and actual
results, developments or events could differ materially from those disclosed in
the forward-looking statements. Forward-looking statements are subject to a
number of risks and uncertainties, including without limitation, the possibility
that regulatory authorities do not accept our application or approve the
marketing of our therapy, the possibility we may be unable to raise the funds
necessary for the development and commercialization of our therapy and other
risks and uncertainties described in our filings with the SEC. We do not assume
any obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
For further information, please contact:
Claudia Napal Drayton
Chief Financial Officer
Sunshine Heart, Inc.
T: +1-952-345-4205
Investor Relations
Sunshine Heart Inc.
ir(at)sunshineheart.com
This announcement is distributed by GlobeNewswire on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Sunshine Heart, Inc. via GlobeNewswire
[HUG#2033670]
Unternehmensinformation / Kurzprofil:
Datum: 08.08.2016 - 11:30 Uhr
Sprache: Deutsch
News-ID 487699
Anzahl Zeichen: 7354
contact information:
Town:
Minnesota
Kategorie:
Business News
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"Sunshine Heart Announces Strategic Acquisition of Aquadex Product Line from Baxter and a new credit facility with Silicon Valley Bank"
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