Lombard Medical to sell polymer coatings business

This business, which made a net loss of 356,000 in 2008, develops drug-eluting coatings for coronary stents as well as hydrophilic surface treatments and lubricious coatings to reduce friction on cardiovascular and urinary catheters respectively. PBM will sell the goodwill, contractual rights and intellectual property of its polymer coatings business to Bayer MaterialScience AG with the remaining assets to be sold to Bayer Plc.

Completion of the agreement is conditional upon the successful novation of various key contractual arrangements to BMS and satisfactory leasehold arrangements being entered into between BMS and PBM's landlord. Completion is expected to occur within the next few weeks.

On completion, the employees of PBM will be transferred to Bayer Plc and PBM will receive cash consideration of 1.0m.

The proceeds are intended to contribute towards funding the company's ongoing US clinical trial of its lead product Aorfix.

This divestment is part of Lombard Medical's strategy to focus its resources on Aorfix, its unique endovascular stent graft for the treatment of abdominal aortic aneurysms.

Story provided by Business Financial Newswire