Irvine medical device maker Endologix Inc. said Thursday it is buying a Bay Area company in a deal that could be worth up to $54 million.
Endologix is buying Nellix Endovascular Inc. of Palo Alto for $15 million in stock, plus up to $39 million in milestone payments.
Endologix makes stents that are used to reinforce a ruptured or ballooning section of an artery.
The company’s primary product, the Powerlink, treats abdominal aortic aneurysms, or a weakening of the wall in the aorta, which is the body’s largest artery. Powerlink is delivered through a catheter.
Nellix also makes devices for treating abdominal aortic aneurysms.
As part of the deal funding, Endologix said it received a commitment for $15 million in funding from Palo Alto-based Essex Woodlands Health Ventures. Essex Woodlands was Nellix’ majority owner.
Endologix said it would put the money toward developing Nellix’s device in anticipation of a European launch in 2012, as well as building up a European sales force and starting a U.S. clinical trial.
