by
Lauren Dubinsky, Senior Reporter | December 14, 2016
Ongoing litigation with
CardiAQ threatened deal
Boston Scientific Corporation announced on Tuesday that it closed its $75 million acquisition of Neovasc Inc. assets.
Neovasc is a specialty medical device company that sells products in the cardiovascular marketplace. Its products include a mitral bioprosthesis valve in development called Tiara and Neovasc Reducer for the treatment of refractory angina.
On December 2, 2016,
the companies announced a definitive agreement for Boston Scientific to acquire certain assets and capabilities of Neovasc's advanced biological tissue business as well as 15 percent equity in the company.
The advanced biological tissue capabilities will be integrated into Boston Scientific's structural heart business. It will be used for the manufacturing of Boston Scientific's Lotus Valve System and future heart valve technologies.
Under the agreement, Neovasc has been given a license to the purchased assets and access to the sold facility. That will allow them to continue their tissue and valve assembly for remaining customers and work on their own tissue-related programs including clinical and regulatory pathways for Tiara.
In 2014, CardiAQ Valve Technologies, Inc. filed suit against Neovasc and the litigation is still ongoing. The U.S. District Court for the District of Massachusetts held a hearing on Monday and denied CardiAQ's motion for a temporary restraining order to prevent the acquisition agreement from closing.
Boston Scientific has acquired 11,817,000 common shares in the capital of Neovasc at a price of $.60 per common share. Neovasc intends to use the proceeds of these transactions to post a partial bond in connection with a stay of judgement, pending appeal in the ongoing litigation against CardiAQ.
