Medical materials maker confident of finding buyer for polymer unit

AORTECH, the former Glasgow life sciences firm now based in Utah, will hold talks in the New Year to sell its medical polymers business.

The Aim-quoted business, which produces plastics used to make medical devices, put the unit on sale earlier this year but failed to find a buyer due to its “dwindling cash position”.

After settling a legal dispute with big customer St Jude Medical on Christmas Eve, AorTech believes it is now in a much-stronger position to find a buyer because the threat of a potential “fire sale” has been removed.

Under the deal, AorTech will receive $3.9 million (£2.4m), with $3.4m due now and a further $500,000 on 31 March. St Jude will also buy AorTech’s factory for $250,000.

Chairman Bill Brown said the company will now look for a partner to develop its plastic heart valve technology, which has taken a back seat over the past year.

Brown, a former Edinburgh-based F&C fund manager, added: “We have succeeded in stabilising the company, we have a decent cash position and our contracts are now valuable.

“We will seek to take the company forward with a view to creating value for shareholders. This is likely to result in a double strategy of seeking a sale of the polymer business and a deal on the heart valve technology.”

His comments came as the firm posted a pre-tax loss of $1.5m for the six months to 30 September, compared with a profit of $250,000 a year earlier.

AorTech was founded in 1992 but closed its Bellshill plant in 2004 and moved first to Australia and then to the United States.