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Surmodics surges as it inks commercialisation deal with Abbott for SurVeil PAD treatment

Last updated: 11:58 27 Feb 2018 EST, First published: 06:58 27 Feb 2018 EST

narrow artery
SurVeil is currently going through a pivotal clinical trial which is testing it against the current standard-or-care treatment

Shares in Surmodics Inc (NASDAQ:SRDX) surged on Tuesday Morning after the medical device and coating maker inked a commercialisation deal with pharma giant Abbott Laboratories (NYSE:ABT) for its SurVeil peripheral artery disease treatment.

Abbott – which already has a broad line of vascular devices to treat PAD – is paying US$25mln upfront for the exclusive worldwide commercialisation rights for SurVeil, plus up to a further US$67mln in development milestones.

SurVeil is currently going through a pivotal clinical trial in the US which is comparing the drug-coated balloon product against Medtronic PLC’s (NYSE:MDT) current market-leading treatment, IN.PACT Admiral.

Under the terms of the deal, the two companies will work together on product development, clinical trials and securing marketing approvals in the US and Europe.

“We are excited to enter this partnership with Abbott given its deep expertise in vascular care products and its worldwide strength in the market,” said Surmodics chief executive Gary Maharaj.

“We look forward to working together with Abbott to realise the full potential of our SurVeil drug-coated balloon to help people with peripheral artery disease.”

PAD is a serious circulatory condition and is most commonly a narrowing of the arteries in the legs. It affects an estimated 200mln people around the world.

Studies so far have shown that the SurVeil drug-coated balloon is more effective at targeting a particular area of the body and reducing the amount of drug particles that don’t ‘latch’ on to the target and end up elsewhere in the body.

Surmodics’ stock was up 11% to US$30.20 shortly before midday on Tuesday.

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