Abiomed (NSDQ:ABMD) said yesterday that it acquired a German heart pump maker in a deal worth up to $30 million.
Danvers, Mass.-based Abiomed said it paid $13 million up front for ECP Entwicklungsgesellschaft mbH and put another $15 million on the table in potential milestone payments. The deal also includes a nearly $2.8 million buyout of AIS GmbH Aachen Innovative Solutions, which owns some of the patents licensed to ECP, according to a press release.
"As the established leader in percutaneous heart pumps with deep relationships in cardiology, existing regulatory approvals, extensive IP, a solid pipeline and strong cash balance, this acquisition further strengthens our position as the long-term innovator and leader in the field of temporary ventricular assist devices," chairman, president & CEO Michael Minogue said in prepared remarks.
ECP is developing a percutaneous, expandable catheter pump that, unlike Abiomed’s flagship Impella pump, uses an external drive shaft, according to the release. Patents covering the technology from some 40 "patent families" will be added to the roughly 100 patents and patent applications covering the Impella line, Abiomed said.
The deal calls for Abiomed to pay Berlin-based ECP’s owners $7 million for CE Mark approval in the European Union and another $8 million once the $125-million sales mark has been reached, according to the release.
"This acquisition of ECP will assist in augmenting our existing intellectual property," Impella inventor and chief technology officer Thorsten Siess said in a statement. "Our goal is to continuously enhance the Impella platform with technological capabilities that best serve our customers and improve patient care."
Abiomed said the ECP acquisition will report to its European headquarters in Aachen, Germany.
"The company’s future plans for this acquisition, in addition to augmenting its robust patent portfolio, are to potentially integrate the ECP technology into the existing Impella platform and/or incorporate ECP capabilities into a smaller insertion device with a reusable drive shaft, as a standalone low-cost product offering," according to the release.
ABMD shares closed up 1.1% yesterday at $25.41 apiece.
