Angiotech Pharmaceuticals Inc. has signed a deal to sell its interventional products business for $362.5-million in cash and use the money to repay all its outstanding debt.
The sale, which includes the company's biopsy devices, drainage catheters and other products, to Argon Medical Devices, Inc., a portfolio company of RoundTable Healthcare, is expected to close by the end of April.
Angiotech said some of the extra cash remaining after it repays its debts will be paid to its shareholders and the rest will be invested in its remaining businesses.
The company's stock was delisted from the Toronto and Nasdaq markets in early 2011 during a court-supervised restructuring but has continued to report its financial results in the United States.
Angiotech plans will to report its final public annual report to U.S. regulators by March 31 and subsequently cease being a reporting issuer after the sale closes.
Previously, Angiotech and its U.S.-based partners had commercial success with a coating process used in making devices for angioplasty heart surgeries.
The company's remaining assets include its surgical products business, its royalty business and some property in Denmark.
Angiotech will also retain its intellectual property related to BioSentry, formerly called Bio-Seal, which will be made by Argon under a three-year manufacturing and supply agreement that will coincide with the asset sale.
The surgical products business generated $123.1-million of revenue last year and royalties generated $15.1-million of revenue.