Sunshine Heart ($SSH) has acquired Baxter International’s ($BAX) line of Aquadex products. Per the agreement, Baxter will bring in $4 million in cash and 1 million shares of Sunshine’s common stock.
The Aquadex line is used for temporary and extended ultrafiltration treatment for those experiencing fluid overload who also don’t respond to diuretic therapy. Temporary treatment can last up to 8 hours, while extended therapy is longer than 8 hours and the patient requires hospitalization.
John Erb, chairman and CEO of Sunshine, noted in the announcement that the investment will help strengthen Sunshine’s presence in the heart failure market.
“We believe Aquadex is a valuable and highly complementary technology to our expanding heart failure product portfolio,” Erb said in a statement. “There is a real need for fluid management in patients both before and following any kind of heart failure procedure. Aquadex is used to treat fluid overload in congestive heart failure patients and can help reduce the length of stay while in the hospital and the number of hospital visits in total.”
Erb also noted that the company expects to see a “relatively quick payback period,” which will be achieved through Sunshine’s current team of clinical specialists offering direct support to existing Aquadex customers.
Sunshine has repaid anything outstanding from its existing debt facility with Silicon Valley Bank and has entered into a new $5 million facility to “finance future working capital needs,” the company said in the announcement. The announcement noted that certain conditions and compliance with financial covenants are placed on any advances made under this new facility, though Sunshine does not currently meet these conditions.
- here's the press release