Edwards Lifesciences (NYSE:EW) won some Wall Street love after it closed the books on a $42 million buyout of privately held Dutch hemodynamic monitoring technology company BMEYE B.V.
EW shares gained 3.7% today, trading at $87.69 as of about 1:15 p.m. It’s a welcome boost for the device maker, which saw its stock plummet 19% yesterday after a lowered sales outlook for its 3rd quarter.
Edwards expects the purchase to be "slightly dilutive" in 2013, and will release more details when the company updates its financial guidance in December, according to a press release.
BYEYE develops non-invasive finger cuff technologies for monitoring real-time information about cardiac output, blood pressure and other vital parameters for use in surgical, intensive care, emergency room and cardiology settings, according to the company.
"BMEYE’s unique non-invasive technology platform complements our existing portfolio and will provide clinicians with critical, comprehensive hemodynamic monitoring information for a broader range of patients," Edwards critical care & vascular corporate vice president Carlyn Solomon said in prepared remarks. "Numerous studies have concluded that therapy guided by hemodynamic monitoring improves patient outcomes and reduces complications and lengths of hospital stays."
The devices are used mostly outside of the hospital not, but Edwards aims to turn that around by integrating the technology into its Edwards EV1000 clinical platform for use in hospital acute care settings.