Affluent: share price rises following agreement with Edwards

(CercleFinance.com) - Affluent Medical climbs 12% on the Paris Bourse on Friday, after concluding a series of technology agreements with US-based Edwards Lifesciences, in return for a payment of 15 million euros.


In detail, Edwards will pay five million euros for an exclusive option to purchase Kephalios, Affluent's wholly-owned subsidiary developing the innovative Kalios adjustable mitral ring, based on the results of its clinical study.

Operational activities for the development of Kalios will continue
to be managed exclusively by Affluent during the life of the option.

The agreement also provides for a payment of five million euros in respect of Affluent's worldwide, non-exclusive license to biomimetic cardiac mitral valve replacement technology, limited to open-heart surgery.

Lastly, Affluent will receive five million euros in exchange for a stake in its capital from Edwards, which will become a 9.2% shareholder once the transaction is finalized.

In a reaction note, analysts at TP ICAP Midcap Events - who have a buy recommendation and a price target of 3.7 euros - hail the "important" agreements signed with "one of the sector's behemoths".

The Invest Securities team praised the "highly structuring agreement", which should be welcomed by the market despite the dilutive impact of the capital increase, estimated at over 16%.

15 million, thus securing the next 12 months, significantly reinforces the Group's credibility, as it welcomes a major player to its capital, and enables it to intelligently enhance the value of its mitral franchise", emphasizes the brokerage firm.

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