Ellex has announced it will focus its attention on the iTrack glaucoma surgery device following the sale of its lasers and ultrasound business to the French company Lumibird Group SA.
The sale, for AU$100 million in cash, excluded both the iTrack and Ellex 2RT for age related macular degeneration, but included Ellex’s state of the art manufacturing facilities in Adelaide
The sale, for AU$100 million in cash, excluded both the iTrack and Ellex 2RT for age related macular degeneration, but included Ellex’s state of the art manufacturing facilities in Adelaide.
In a statement, Victor Previn, Chairman of Ellex, said “The new Ellex, which will be subject to a change in name post-transaction completion, will focus on the rapidly growing glaucoma surgery device market with is core iTrack franchise. Although Ellex 2RT for age-related macular degeneration is also not part of the sale to Lumibird, we will be in a position to outline our preferred strategic approach for future development of this innovative laser platform following a meeting with the FDA in early first quarter 2020.”
Lumibird has an existing range of lasers and ultrasounds, which it sells to ophthalmology under the Quantel Medical brand.
Jean-Marc Gendre, CEO of Quantel Medical, said Lumibird’s existing products complement those acquired from Ellex, enabling the company to expand its offering, with “a wider range of products across all levels of pricing in order to better meet clients’ diverse needs”.
Maria Maieli, CEO of Ellex Medical Lasers said the sale, “highlights the value of our brand, the dedication of our employees, the strategic importance of our global sales and distribution network, and the many doctors and patients we serve. Lumibird will make an excellent strategic fit for Ellex’s market leading range of lasers and ultrasound to treat a range of important eye diseases.”
On completion of the transaction, Lumibird will acquire all of Ellex Lasers and Ultrasound products:
- Tango and Tango Reflex for selective laser trabeculectomy lasers used in the treatment to glaucoma (FY19 revenues $32.3m),
- Ultra Q and Ultra Q Reflex lasers used in the treatment of secondary cataracts and vitreous floaters (FY19 revenues $12.6m),
- Integre Pro and Integre Pro Scan lasers used in the treatment of diabetic eye disease (FY revenues $14.4m), and
- Ellex Eye Prime, Eye One and Eye Cubed ultrasound products (FY19 revenues $4.3m).
The lasers and ultrasound segment contributed approximately 80% of group sales and represented 77% of the group’s assets at 30 June 2019. Collectively, its revenue amounted to $66.5m in FY19 and $9.5m earnings before interest, tax, depreciation and amortisation.
As the sale of the lasers and ultrasound business represents disposal of a major asset, Ellex is seeking shareholder approval at an extraordinary general meeting to be convened in late March 2020 with completion of the proposed transaction anticipated to occur before April 2020.