New Agreement for AMMD - Analyst Blog

American Medical Systems Holdings, Inc. (AMMD) recently entered into a new agreement with Tissue Genesis, Inc., an emerging leader in advanced tissue engineering and cell therapy solutions, for the research and development of adipose (fat) derived regenerative cells for use in treating pelvic health disorders. 

Per the agreement, American Medical has a four year option to obtain exclusive distribution and license rights to Tissue Genesis' regenerative cell technology, including the Tissue Genesis Cell Isolation System for use in human pelvic health applications, with an additional two year right of first refusal. 

American Medical will pay $1.1 million to Tissue Genesis to obtain these rights. Tissue Genesis will also provide American Medical with instruments, disposables, and know-how to allow American Medical to develop state-of-the-art regenerative cell applications. 

Headquartered in Minnetonka, Minnesota and founded in 1972, American Medical Systems focuses on men's and women's pelvic health. In addition to U.S. sales, the company sells its products in Canada, Asia, Australia, Europe, and South America. Based on product lines, men’s health products and women’s health products contributed approximately 44% and 33%, respectively to 2008 revenue. The balance was contributed by benign prostate hyperplasia (BPH) therapies. On a geographic basis, the U.S. and international operations contributed 71% and 29%, respectively, to total 2008 revenue. American Medical Systems competes with Johnson & Johnson (JNJ) and Boston Scientific Corp. (BSX).
 
American Medical will report its fourth quarter and full fiscal 2009 results on Feb 16, 2010 after the market closes.
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