Mentice AB intends to acquire all assets related to the software solution Ankyras from the Spanish corporation Galgo Medical S.L. June 9, 2022
Mentice AB (publ) (“Mentice” or the “Company”), a leading provider of high-tech solutions for decision support and productivity with the medical field of image guided interventional therapies, announces the intention to acquire all assets of the Ankyras software suite (“Ankyras”) from Galgo Medical S.L. (“Galgo”) for an amount of EUR 1.80 million (approximately SEK 18.78 million[1]) with a possible additional purchase amount of EUR 0.975 million (approximately SEK 10.17 million1), and with a total purchase consideration amounting to approximately EUR 2.775 million (about SEK 28.95 million1) to be paid in cash (the “Acquisition”). The agreement and the completion of the said agreement is conditioned upon Mentice financing the transaction, which is planned to be performed through a directed new share issue.
[1] EUR/SEK = 10.4330
The Acquisition
The Acquisition is related to precision medicine software solutions for the area of neuro interventional therapies, specifically for planning and analysis regarding preventive treatment for cerebral haemorrhage and aneurysms in the brain. The Acquisition is the Company’s first within the area of precision medicine and in line with the strategic direction that the Company has previously communicated with its intention to expand vertically in the field of therapy for image-based interventions. The Acquisition is characterized as a technology acquisition as this solution is in an early phase of its commercialization. However, the solution has been developed for a long time by Galgo and the software Ankyras is patent protected and CE-marked product (Medical Device Regulation MDR) with technology published by Galgo since 2013.
This area for treatments of aneurysms in the cerebral arteries in the brain is a growing therapy area and one of the causes of stroke. Stroke is the third leading cause of death due to illness in healthcare and the largest cause in the world for lifelong care dependence. One of fifty people in the world is estimated to have an undetected or untreated aneurysm in the brain that potentially can lead to a stroke (cerebral haemorrhage).
Ankyras is an advanced cloud-based analysis solution that allows a physician to plan treatment for a specific patient. The doctor can, with the help of Ankyras, select a suitable clinical instrument, i.e. type and size, and then by marking where this instrument should be placed obtain an analysis of how well the instrument rests against the vessel wall and how effectively it blocks the opening to the aneurysm.
The Company estimates that this market, which is growing rapidly, currently amounts to approximately SEK 100 million, which is a factor in the Company’s decision to expand in this market. Although Ankyra’s current market share is small, we believe that Mentice will quickly be able to gain market share, thanks to its strong relationship with, above all, the medical technology industry, but also with leading doctors and hospitals in the area.
Mentice has an ambition to expand its offering to the market for decision-making and performance solutions in the area of Image Guided Interventional Therapy (“IGIT”), where the addressable market, according to the Company’s own estimates, exceeds USD 0.5 billion and has an estimated market potential of approximately USD 2 billion.
“It is very exciting to be able to present this acquisition of Ankyras. Ankyras has a unique technology and validated algorithm for planning aneurysm treatments in the brain. This exemplifies what we mean with our vertical strategy and our ambition to expand deep into our clinical specialty” says Göran Malmberg, CEO of Mentice.
“We are pleased to have found a home for Ankyras at Mentice and we believe this will be a step in the right direction for the commercialization of Ankyras. We have been working with the Ankyras technology for a long time and we believe Ankyras clearly is addressing a large need in the market” says Antoni Riu, CEO of Galgo Medical S.L.
About Galgo
Galgo is a Barcelona-based development company originating from the Department of Information Technologies at the Universitat Pompeu Fabra (Barcelona, Spain). Galgo has worked with solutions for medical technology and in addition to the software solution Ankyras has developed a number of other solutions in areas such as stereotactic neurosurgical planning, cardiac electrophysiology and osteoporosis.
Financing and terms
The completion of the Acquisition is expected to occur in June 2022 and is conditioned upon customary terms and completed external financing, which is planned to be obtained through a directed new share issue based on the authorization the board of Mentice received at the Annual Shareholders Meeting on April 27 this year.
This disclosure contains information that Mentice AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 09-06-2022 18:24 CET.
