On March 7, Gelonghui | Guichuang Tongqiao-B (02190.HK) announced that in order to enhance the company's peripheral vascular intervention device portfolio, the company has entered into a series of licensing and investment agreements with Avinger Inc. (“Avinger”). Avinger is an American innovative medical device company and an independent third party.
Under these agreements, the Company will: obtain exclusive rights to localize, manufacture and commercialize the entire product line of optical coherence tomography (“OCT”) consoles, OCT guided peripheral vascular plaque removal devices and chronic complete peripheral vascular occlusion (“CTO activation”) devices developed by Avinger in the Greater China region (including mainland China, Hong Kong, Taiwan, and Macau); and, after obtaining regulatory approval and/or filing, become an authorized OEM manufacturer of licensed products sold by Avinger or its agents outside of Greater China; and Avinger collaborated to develop a number of peripheral vascular intervention products with US and German distribution companies; and invested US$15 million in Avinger in two installments (US$7.5 million each, depending on achieving certain milestones and meeting other delivery conditions) by subscribing to Avinger's newly issued common stock and preferred shares.
The company believes that cooperation with Avinger will enable both parties to accelerate the release of potential and unmet clinical needs in the field of vascular disease treatment in the Chinese peripheral vascular intervention market. The company will use its extensive marketing and sales network to promote advanced technology developed by Avinger to bring high-quality and affordable innovative medical device products and solutions to more Chinese patients. The company expects that the localized manufacturing and supply of Avinger products in China will help it reduce production costs and gain a cost advantage in global market competition. Additionally, the company anticipates collaborating with Avinger to explore the synergy between the two products on a global scale. The company believes that this cooperation is another key step for the company to establish a leading position in the PAD interventional device market. After successfully partnering with Avinger, the company will have a full product portfolio to meet the clinical needs of CTO opening, vascular preparation, and lesion treatment.