Kensey Nash, a regenerative medicine company, has entered into a new two-year supply agreement with St Jude Medical, effective January 1, 2011 to December 31, 2012.
The agreement provides Kensey Nash to be the exclusive outside supplier of collagen plugs, one of the key resorbable components of the Angio-Seal Vascular Closure Device, the arterial puncture closure product in the world.
The new agreement provides for calendar year 2011 minimum order levels equivalent to approximately 25% of current annual collagen plug sales.
Under the existing agreement that remains effective through December 31, 2010, Kensey Nash will be the exclusive supplier of collagen plugs and a 30% supplier of polymer anchors. Under the new agreement, effective January 1, 2011, Kensey Nash will not supply any polymer anchors.
Joe Kaufmann, president and CEO of Kensey Nash, said: “We are pleased to continue as a supplier of this key Angio-Seal device component, a role we have successfully filled since the product’s initial development. With this agreement in place our revenue outlook for fiscal year 2011 becomes much clearer.
“Although at the minimum order level our Angio-Seal component sales would be approximately 45% lower in fiscal 2011 than in fiscal 2010, we anticipate that our total revenue for fiscal year 2011 will be between $81m and $83m.
“In fiscal year 2011, we expect to grow our revenue due to the recent FDA clearances and CE mark approval for our Extracellular Matrix products and the CE mark approval for our Cartilage Repair Device, as well as continued strength in our core Biomaterial business.”