Admedus recruits Cardiva to distribute ADAPT tissue scaffolds in Spain, Portugal

Cardiac medical device technologist Admedus (ASX: AHZ) has refined its worldwide sales strategy, signing up long-time operator Cardiva to distribute its ADAPT bio-scaffolding products in Spain and Portugal.

The marketing and supply agreement announced to market today will start immediately and give the Australian medtech access to more than 120 professionals in the two countries.

Cardiva has been operating in the Spanish and Portuguese health systems for more than 30 years.

Admedus chief operating officer David St Denis highlighted the importance of the deal.

“Through this partnership with Cardiva, Admedus is thrilled to offer our clinically superior ADAPT products to patients in Spain and Portugal – one of the five largest markets in Europe,” the Minneapolis-based chief operating officer and former Merck European commercial operations head said.

“Cardiva is a proven and highly regarded healthcare company and this agreement represents another important milestone in Admedus’ evolution as a leading medical technology company.”

The agreement will expand the Queensland-registered company’s reach to include two more markets, without having to establish and fund a local sales teams.

Cardiva will begin selling Admedus’ flagship ADAPT tissue product, the non-calcifying, non-toxic bio-scaffold known as CardioCel which is used to treat congenital heart defects and disease.

The medical device distributor will add VascuCel and CardioCel 3D to its product portfolio later this calendar year.

Madrid-based Cardiva director Carlos Ibares Sanz said the medial devices dealer was excited to partner with Admedus, saying its products and technology were “at the forefront of cardiovascular science and bio-tissue engineering”.

“This is an excellent opportunity for both companies to reinforce their position as demonstrated leaders in cardiovascular health and we look forward to introducing their unique ADAPT products to the Spanish and Portuguese market,” said Mr Ivares Sanz who is also the former Boston Scientific vice-president.

ADAPT

ADAPT is an engineering process that allows a manufacturer to create bio-scaffolds that can be implanted in heart tissue material and promote ingrowth and a better immune response in patients than other intervention treatments.

The shaped tissue products produced can be used for cardiovascular repairs, helping to mend congenital heart defects, heart valves and vessels.

Admedus’ emergence

Admedus, previously known as Allied Healthcare Group, was created in 2011 with the merger of its parent companies Allied Medical and bioMD. It currently sells ADAPT tissue products in Australia, Canada and the US.

The company says its CardioCel product is used by surgeons in more than 135 centres in Australia, Europe, US, Canada, Singapore, Malaysia, Hong Kong, India, and the Middle East and North Africa region.

The company’s goals for 2018 include to invest in and develop next-generation technologies with world-class partners, acquire strategic assets to grow product-and-service offerings and expand revenues from its medical sales and distribution business.

World sales milestones

Admedus hit another milestone in Canada in March, where it sells CardioCel, securing Canadian regulatory approval for ADAPT’s CardioCel 3D and VascuCel, and began selling CardioCel 3D in the US on 1 February 2018.

Also in March, the company signed a three-year purchasing agreement with a major US-based group purchasing organisation through its US subsidiary Admedus Corporation, giving it access to 1500 hospitals with a collective purchasing power of about A$35 billion.

The deal will allow the company to expand its US sales network.

Admedus securities were 3.39% higher at A$0.305 by lunchtime.