StockNews - LMA purchases new technology

LMA International N.V., the innovative manufacturer of airway management devices, announced that it has acquired the intellectual property and distribution rights to an innovative lithotripsy device from a Swiss inventor and engineering team.

By purchasing 50% of the equity of LMA Urology Limited, a Seychelles-incorporated company, for US$3.84 million, LMA will gain access to the exclusive intellectual property rights of an innovative lithotripsy device known as "Stonebreaker".

Lithotripsy is a procedure to obliterate kidney stones in the bladder, ureter or kidney, a condition that affects more than 2 million people in the US and Europe every year.

This product is currently undergoing the approval process in Europe and is expected to receive the CE mark in the second quarter of 2006. Application for FDA approval for the US market is expected to commence in the second half of 2006.

According to LMA International's press release, the "Stonebreaker" device represents a breakthrough in size, power, portability and clinical effectiveness and is expected to be very attractive to existing interventional urologists worldwide.

In addition, LMA has identified a further 25 major market urology distributors with whom separate distribution arrangements will be negotiated. Sales and marketing of the new product will be managed independently of LMA's core airway management business and a management team with the relevant expertise will be put in place to focus on developing this new business. The high-quality Swiss-made device is expected to offer both technical and clinical advantages compared to current treatment options and offers the potential to make the lithotripsy procedure more affordable and accessible to a wider number of physicians and their patients."

Upon entering the lithotripsy market, LMA will then compete wih well established companies like Microvasive Urology, ACMI, Dornier MedTech, Karl Storz, Coloplast, Astra Tech, Bard Urological.

This deal seems to add future prospects to growth for the company as it embarks on new ventures beyond their mainstream airway management devices. If this venture proves successful, LMA would be more confident in increasing its product offerings and would grow on to be one of medical device manufacturers that offers diverse range of services.

Furthermore this purchase seems to add on to profits as half of the payments are made upon reaching certain revenue targets. On top of that, LMA is treading cautiously on this deal but is able to puchase the remaining shares in LMA Urology.