REVA Medical Inc shares plunge 12% to a 52-week low

The REVA Medical Inc (ASX:RVA) share price has fallen to a 52-week low today. Here’s why…

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Team of happy healthcare workers talking on a meeting.

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.

What happened?

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.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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