Unfortunately for its shareholders, the REVA Medical Inc (ASX: RVA) share price is having a terrible end to the week.
In afternoon trade the medical device company’s shares are down 12% to a 52-week low of 70 cents.
This morning REVA announced the expiration of Boston Scientific Corporation’s exclusive right to negotiate for distribution of its coronary and peripheral bioresorbable scaffolds.
According to the release, the 2007 agreement would have seen Boston Scientific pay REVA 50% of the average selling price on all future product sales.
But it appears as though Boston Scientific doesn’t see value in the product any more, leading to the company allowing its distribution option to expire.
As a result, REVA’s management has advised that its own direct selling effort is now underway.
Time will tell whether Boston Scientific has made the right decision.