The transaction is subject to customary closing conditions and is expected to close by June 30, 2008. The commercialized products acquired consist of the QuickCat thrombus aspiration catheter, ThromCat thrombectomy device, and SafeCross products used to treat chronic total occlusions.
Kensey Nash will continue to manufacture the ThromCat and SafeCross products for an initial term of three years, which may be extended. Spectranetics expects to assume manufacturing responsibilities for the QuickCat product after a six month transition period. Additionally, after manufacturing of the ThromCat and SafeCross products is transferred to the company, the company will be obligated to pay Kensey Nash a share of revenues received from sales of such products.
After manufacturing of the QuickCat product has transferred to the company, there will be no obligation to make additional payments to Kensey Nash related to future sales of the QuickCat product. Spectranetics and Kensey Nash will work together to continue to develop improvements to these products and initial efforts will be targeted at the next generation ThromCat and SafeCross products.