Blog Tag: acquisition

Edwards Completes Acquisition of CardiAQ

According to PRNewswire, Edwards Lifesciences Corporation recently completed its acquisition of CardiAQ Valve Technologies, Inc, a developer of transcatheter mitral valve replacement systems, which follows from Edwards’ acquisition agreement announced last month.  The article reports that Edwards paid $350 million cash for CardiAQ at closing, with an additional $50 million to be paid upon reaching a European regulatory milestone.

Michael Mussallem, Edwards’ Chairman and CEO, stated:

We look forward to the CardiAQ team joining Edwards.  We believe the combined knowledge and efforts of the talented CardiAQ and [Edwards’ own] FORTIS transcatheter mitral valve system teams will help us advance a therapy that offers a meaningful solution for patients.

Marketwatch reports that none of CardiAQ’s valve systems are presently approved for sale in any country.  However, according to PRNewswire CardiAQ has received U.S. FDA Investigation Device Exemption approval to conduct an early feasibility study of up to 20 patients, and also plans to initiate a CE Mark study in Europe.

Lombard Medical Acquires Altura Medical

Lombard Medical, Inc. recently announced that it has acquired Altura Medical.  Lombard is an Irvine, California-based medical device company that makes devices for endovascular aneurysm repair (EVAR) of abdominal aortic aneurysms (AAAs), including the AorfixTM Endovascular Stent Graft.  Altura Medical is a privately-held, venture-backed company, which is based in Silicon Valley.  Altura has developed an ultra-low profile endovascular stent graft technology for the treatment of AAA, which received a CE Mark this year.

Depending on milestones, the acquisition could be worth $50 million.  According to the terms of the transaction, Lombard will pay $23 million now in the form of: the issuance of $15 million of Lombard common stock at $4 per share; the assumption of $5.5 million in bank debt; and $2.5 million in liabilities and transaction-related costs.  Additional payments of up to $27.5 million may be paid over the next five years based on achievement of commercial and regulatory milestones.

Lombard plans to launch Altura’s endograft system in Europe in January 2016, to be followed by a larger international launch later in the year.  Simon Hubbert, Lombard’s CEO, stated:

The combination of Altura’s technology with our flagship AorfixTM platform creates a truly patient driven platform that we believe will allow us to capture share from our competitors. The Altura device offers a simple, safe and efficient treatment option for standard AAA anatomy, while Aorfix offers the only on-label solution for patients with Aortic neck angulation up to 90 degrees.

Medtronic Acquires Aptus Endosystems for $110 Million

Medtronic PLC recently announced its acquisition of Aptus Endosystems, further adding to its portfolio of medical device products. The acquisition was reported to be valued at approximately $110 million.

According to its website, Aptus Endosystems produces advanced technology for endovascular aneurysm repair (EVAR) and thoracic endovascular aneurysm repair (TEVAR).  Its products are said to secure artificial patches inside weakened aortic arteries, helping to improve a condition known as abdominal aortic aneurysm. These systems are said to be designed for patients whose anatomies may not be ideal for traditional surgical treatment for aneurysms.

Aptus’s website states that its Heli-FX and Heli-FX Thoracic EndoAnchor systems minimize the need for complicated procedures by attaching a variety of aortic endografts to the native vessel wall. The website states that these systems are used to anchor the liner and prevent leakage, and are especially helpful for patients with existing problems with an endograft seal or who are considered high risk candidates for a revision procedure if the initial seal fails.

According to the Aptus website, both systems are approved for distribution in the European Union and are cleared by the FDA for distribution in the U.S.  They are said to be compatible with both Medtronic’s Endurant and Valiant graft systems, as well as other commercially available stent grafts.

According to news sources, Medtronic has also acquired several other companies this year including CardioInsight (for $93 million); Dutch diabetes clinic Diabeter; Sophono; and Advanced Uro-Solutions.

Cardinal Health to Acquire The Harvard Drug Group for $1.1 Billion

Ohio-based Cardinal Health (CAH)  has agreed to buy Michigan-headquartered The Harvard Drug Group (THDG) for $1.12 billion. According to press releases, THDG, which is currently owned by Court Square Capital Partners, is a distributor of generic pharmaceuticals and over-the-counter medications to retail and institutional customers. The deal is expected to close in the beginning of fiscal year 2016 and will be paid for using existing cash and new debt.

Cardinal Health predicts the acquisition will enhance Cardinal’s generic pharmaceutical distribution and enable specialized packaging offerings to meet the needs of hospital systems and other institutions. Cardinal Health chairman and chief executive officer George Barrett said:

” The Harvard Drug Group aligns perfectly with our commitment to provide the most comprehensive line of pharmaceutical products for the broadest range of customers… This acquisition enhances our ability to support retail and institutional customers and further utilizes Red Oak, our joint venture with CVS Health to source generics…”

According to the press release, the deal includes THDG’s 450 employees and two distribution facilities.  THDG had revenues of approximately $450 million in 2014. Cardinal Health projects the acquisition will add 15 cents to Cardinal’s earnings per share in fiscal year 2016.

The deal is not the first announced by Cardinal Health this year. In March, Cardinal announced it would acquire Johnson & Johnson‘s Cordis business  for $1.94 billion cash.

 

Heraeus Medical Components to Acquire NeoMetrics

Heraeus Medical Components to Acquire NeoMetrics

In a press release issued March 18, 2015, Heraeus Medical Components, a global business unit of Heraeus Holding GmbH, announced that it will acquire NeoMetrics, Inc.  According to the press release, Heraeus Medical Components has executed a share purchase agreement to acquire 100% of the stock in the privately owned NeoMetrics.  The transaction is expected to occur within the next 60 days.  Further details of the deal were not disclosed.

Regarding the acquisition, Dr. Nicolas Guggenheim, President of Heraeus Medical Components, said:

 With this acquisition, Heraeus Medical Components will add new interventional technologies to augment their leadership position as a sourcing solution for the world’s medical device companies. We are excited about the potential growth opportunities within the interventional field.

According to its website, Heraeus Medical Components “provides expert, comprehensive medical component manufacturing services, meeting a broad range of functional demands” and provides a range of medical device products.

NeoMetrics’ website indicates that it is headquartered in Plymouth, Minnesota, was founded in 2001, and operates exclusively as an OEM partner of medical device companies.  Its website touts expertise in a wide variety of medical device guidewires.  The USPTO Assignment Database lists two patents, among several applications, assigned to Neometrics:

  • U.S. Patent No. 8,801,633, entitled “High-Modulus Superelastic Alloy Wire for Medical and Dental Purposes”
  • U.S. Patent No. 8,308,658, entitled “Medical Guidewire”

Figure 1 from the ‘658 patent is reproduced above.

Smith & Nephew and ArthroCare $1.7 Billion Merger Moving Forward

On March 14, 2014, according to a press release, Smith & Nephew plc announced the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, for the proposed merger of ArthroCare Corp. with Smith & Nephew plc. According to the press release and as reported in the Austin Business Journal, the early termination of the waiting period satisfies one of the conditions for closing of the proposed acquisition of ArthroCare by Smith & Nephew.

The Austin Business Journal states that Austin, Texas-based ArthroCare, is “Austin’s largest medical device business and reported $377.9 million in revenue for 2013. The company employs 270 workers in Austin and a total workforce of 1,800, according to the 2014 Austin Business Journal Book of Lists.”

According to ArthroCare’s website:

ArthroCare is a highly innovative, multi-business medical device company that develops, manufactures and markets products based on our internationally patented Coblation technology. This platform technology precisely dissolves target tissue and minimizes damage to surrounding, healthy tissue…. Our devices have been used in millions of cases worldwide across several medical specialties including arthroscopy; spine and neurology; ear, nose and throat; cosmetic; urology; gynecology; and laparoscopy/general surgery.

According to the Austin Business Journal, this “termination paves the way for Austin-based ArthroCare to complete the deal that was announced on Feb. 3 after ArthroCare reached an agreement to be acquired by Smith & Nephew for $1.7 billion, at a price of $48.25 per share.” The press release states that “[t]he transaction remains subject to certain other closing conditions, including approval by ArthroCare stockholders and UK and German regulatory approvals.” In response to the agreement, as reported by the Austin Business Journal on February 11, 2014, an ArthroCare investor has filed a lawsuit in effort to halt the proposed acquisition by Smith & Nephew alleging that “the price agreed upon by ArthroCare’s board of directors was too low and undervalues the company.”

 

LifeCell acquires Adipose Grafting technology from TauTona

On January 27, 2014, according to a press releaseLifeCell Corporation acquired adipose Tissue Injector (aTI) technology for improved fat grafting procedures from the TauTona Group, a medical device incubator based in Menlo Park, California. The press release notes that LifeCell is a sister company of Kinetic Concepts, Inc. (KCI)

The press release also states that aTI is a single-use tool utilized in fat grafting procedures. aTI allows for the controlled delivery of fat, by allowing management of the pressure and flow rates during injection. According to the press release, the controlled rate can minimize damage of the injected fat and reduce the complexity of performing injections.

Furthermore, the press release notes that LifeCell’s fat grafting device, REVOLVE™ Fat Processing System, can “facilitate more efficient processing, filtering, and transferring of a patient’s own fat tissue. It enables high-volume fat processing (up to 800ml lipoaspirate) in less than 15 minutes, offering the potential to reduce operating room procedure time.” According to the press release, the Senior Vice President of LifeCell, Philip Croxford, states that LifeCell believes “the [aTI], in addition to LifeCell’s existing REVOLVE™ Fat Processing System, will offer clinicians valuable solutions from fat grafting processing through reinjection.”

President and CEO of KCI, Joe Woody, describes the effects of the purchase saying:

“With this acquisition, we will leverage the LifeCell sales channel in the reconstructive and plastic surgery fields to commercialize this exciting new technology, . . . We continue to be focused on innovation and acquisitions of technologies and platforms that both complement and further diversify our combined product portfolio.”

Valeant Pharmaceuticals to Acquire Solta Medical for $250M

Valeant Pharmaceuticals announced today that it has entered into an agreement to acquire Solta Medical, a developer of energy-based medical devices for aesthetic applications. The transaction will take the form of an all-cash buyout of the outstanding shares of Solta common stock, at a price of $2.92 per share, for a total estimated value of $250 million. The transaction is expected to close during the first quarter of 2014.

Solta Medical manufactures devices such as Fraxel, Thermage CPT, Liposonix, and Claro for aesthetic applications including skin resurfacing, skin tightening, body contouring, and acne treatment. Valeant is an international pharmaceutical company with a wide range of product offerings, including prescription dermatology products. According to its press release, Valeant states that, when combined with its existing product portfolio, the acquisition of Solta’s branded devices will create the “broadest aesthetic portfolio in the industry.”

This announcement follows on the heels of Valeant’s $8.7 billion all-cash acquisition of the eye health giant, Bausch + Lomb (estimated 2013 net revenue of $3.5 billion). That transaction, which Valeant announced on May 27, 2013, closed on August 5, 2013.

St. Jude Medical Acquires Endosense

On August 19, St. Jude Medical, Inc. announced the acquisition of Endosense SA.  The press release notes that St. Jude Medical has made an initial payment of approximately $170 million with additional cash payments of up to $161 million contingent on achievement and timing of regulatory milestones.

According to the press release, Endosense SA, a Switzerland-based company, “has pioneered contact-force measurement in catheter ablation.” The press release notes that Endosense’s TactiCath irrigated ablation catheter provides physicians a real-time, objective measure of the force applied to the heart wall during a catheter ablation procedure.

Frank J. Callaghan, president of the Cardiovascular and Ablation Technologies Division of St. Jude Medical stated:

This transaction significantly accelerates our timeline to providing an irrigated ablation catheter that incorporates force sensing in both international and U.S. markets, and has potential future applications across other St. Jude Medical technology platforms as well.

The press release states that St. Jude Medical can incorporate the force sensing technology for use with their technologies including offering a “MediGuide-enabled force-sensing ablation catheter and to incorporate force sensing data into the company’s EnSite Velocity™ Mapping System.”

Angiotech Announces Sale of Interventional Products Division to Argon Medical Devices, Inc.

Angiotech announced this morning that it has entered into an agreement to sell its Interventional Products business line for $362.5 million in cash to Argon Medical Devices, Inc.  According to the press release, the sale is expected to close before the end of April.

Angiotech describes itself as being a global specialty pharmaceutical and medical device company that discovers, develops, and markets innovative technologies and medical products primarily for local diseases or for complications associated with medical device implants, surgical interventions and acute injury.  The company focuses on the areas of interventional oncology, wound closure and ophthalmology.

Argon Medical describes itself as being a global manufacturer of specialty medical products offering a broad line of medical devices for interventional radiology, vascular surgery, interventional cardiology, and critical care procedures.

According to the press release, the businesses being acquired by Argon include:

Angiotech’s BioPince™ full core biopsy devices, Tru-Core™ II (fully automatic) and SuperCore™ (semi-automatic) disposable biopsy instruments, T-Lok™ bone marrow biopsy devices, and Skater™ drainage catheters, among other products.

Angiotech will retain both its Surgical Products Business and its Royalty Business, which it describes in the press release as including intellectual property relating to the drug paclitaxel for application in drug-eluting stents that is licensed to Boston Scientific and Cook Medical.