The terms of the buyout were not disclosed, but Covidien did say it would spend at least $50 million to develop CV’s technologies, breaking that down into at least $20 million in anticipated R&D costs during the 2nd half of fiscal 2013 and another $30 million in fiscal 2014.
CV’s flagship device is a drug-coated balloon platform with proprietary tunable, rapid-release capability designed for "touch-and-go" treatment, according to the company’s website.
Covidien doesn’t expect have any CV-based technologies on the U.S. market until fiscal 2017, the company noted in a press release.
Despite the extra R&D spending and the undisclosed administrative and acquisition costs, Covidien reaffirmed its previous financial guidance for fiscal 2013.
In November the medical device maker reaffirmed its expectation for sales growth of 3%-6% for fiscal 2013. That would mean revenues of $12.21 billion-$12.56 billion, in line with expectations on The Street, where FY2013 adjusted per-share earnings are pegged to reach $4.42.
Covidien is still amid a planned spinout of its pharmaceuticals business, which is expected to be completed by mid-2013. The medical device company said in December 2011 that it planned to ditch its no-or-low-growth pharma unit, which will become a stand-alone operation.