"With ATS Medical's technological innovation, strong product portfolio and experienced management team, the company is positioned to be a leader in the cardiac surgery market. We are excited about the opportunity to invest in ATS Medical and share in its success," said Martin Sutter, Co-Founder and Managing Director at Essex Woodlands, who has joined ATS Medical's Board of Directors. Essex Woodlands, a premier venture capital firm which invests exclusively in healthcare, has offices in London, New York Palo Alto and Houston.
"With this financing, we have significantly strengthened our balance sheet and added one of the most respected healthcare investors in the United States to our shareholder base," said Michael Dale, President and Chief Executive Officer of ATS Medical. "In addition, this financing will allow the company to settle a longstanding dispute and related litigation on terms we believe serve the best interest of shareholders. We are pleased to be eliminating the uncertainty and distraction of ongoing litigation."
ATS Medical announced today the settlement of its lawsuit with Carbomedics which began in 2007 and is related to its supply agreement with Carbomedics for certain mechanical heart valve components. Carbomedics' original claims against the company totaled more than $22 million. As part of the Carbomedics settlement, ATS Medical will pay $3.0 million to Carbomedics on December 29, 2008, and an additional $4.5 million on April 30, 2009. Under the terms of the settlement, ATS Medical maintains all rights to manufacture, market and sell the ATS Open Pivot(R) mechanical heart valve. Satisfaction of the settlement terms will conclude all related matters with Carbomedics and preclude any future litigation on the matter in question.
Fourth Quarter Outlook
Excluding the expenses related to settlement of this litigation, ATS Medical believes that it will generate adjusted operating profit for the fourth quarter consistent with its prior guidance for GAAP operating profit.
About ATS Medical
ATS Medical, Inc. provides innovative products and services focused on cardiac surgery. The Company, global in scope, is headquartered in Minneapolis, Minnesota. More than 160,000 ATS Open Pivot(R) Heart Valves, which utilize a unique pivot design resulting in exceptional performance and low risk profile, have been implanted in patients worldwide. The ATS 3f(R) brand encompasses multiple tissue heart valve product offerings at varying steps from market introductions to clinical trials to development projects that incorporate less invasive valve replacement technology. ATS Medical's focus on serving the cardiac surgery community is further strengthened by offerings that include ATS Simulus(R) annuloplasty products for heart valve repair and ATS CryoMaze(TM) surgical ablation products. The ATS Medical web site is http://www.atsmedical.com .