QT Vascular said on Friday it has agreed to sell its non-drug coated Chocolate PTA to Medtronic for US$28 million.
The option agreement was inked on Thursday between the group and two subsidiaries and Medtronic Inc and one of its affiliates. The option is exercisable within 90 days upon achievement of certain milestones.
The group will convene an extraordinary general meeting to seek the approval of shareholders for the option agreement.
Pursuant to the option agreement, Medtronic has the option to acquire specific assets and license intellectual property relating to QT Vascular's non-drug coated Chocolate PTA Balloon Catheter product for use in the treatment, prevention, diagnosis or management of diseases in uncoated peripheral products.
QT Vascular said it will use the sales proceeds to pare down existing borrowings and liabilities, as well as to develop other products.
It currently has a five-year worldwide distribution agreement for Chocolate PTA with Medtronic that was entered into on Feb 2. This will be replaced with the business agreements following the closing of the sale, to facilitate the transfer of the assets.