C.R. Bard (NYSE:BCR) acquired Minneapolis-based angioplasty balloon maker Lutonix Inc. for $325 million.
The merger, announced during Bard’s 2012 guidance update conference call, grants Lutonix $225 million up front with another $100 million when Lutonix achieves pre-market approval for its drug-coated balloons.
Lutonix is conducting the first and only investigational device exemption trial approved by the FDA for a drug-coated percutaneous transluminal angioplasty balloon for treatment of peripheral artery disease, according to a press release.
"Lutonix has the only third-generation drug-coated balloon technology. They also have a significant lead with respect to U.S. launch, outstanding quality and depth of pre-clinical science, a strong clinical program, a very skilled and motivated team, and a coating technology we believe will demonstrate superior safety and efficacy," Bard chairman & CEO Timothy Ring said in prepared remarks. "This position of leadership in a large potential market, combined with our current market leadership in PTA, makes this acquisition a compelling strategic fit for Bard."
Lutonix enrolled the first patient in its Levant 2 clinical trial, the largest randomized peripheral drug-coated balloon trial to date, in July 2011. PMA submission could occur in 2014, the company estimates.
The devices have CE Mark approval for sale in Europe, and Bard plans to begin sales in the European Union during the second half of 2012, concurrent with larger registry studies to support broader marketing claims.
No such devices are cleared for the U.S. just yet.
Bard expects the merger to reduce 2012 earnings per share by about 25 cents, according to a press release.
The merger hasn’t done much for BCR stock, which dove more than 5 percent to $83.20 by about 10:45 a.m. today after closing at $87.78 last night.
Here’s a roundup of companies announcing mergers, acquisitions and divestitures.
Mindray Medical to grab controlling share in Chinese diagnostic company
Mindray Medical International (NYSE:MR) agreed to acquire a controlling stake in Chinese diagnostics company Hunan Changsha Tiandiren Biotech Co. Ltd. The terms of the deal were not made public. Read more
iMedX acquires Abacus
iMedX nabbed up more of its competition in the electronic medical record management systems by acquiring the assets of Abacus Transcriptions Inc. for an undisclosed amount.
Read more
Building Better Companies at DeviceTalks Minnesota
DeviceTalks Minnesota's leadership track is designed to provide attendees with insights on topics such as:
Use code SAVE15 to save 15%! REGISTER NOW |
MassDevice Network
@MassDevice
LinkedIn
YouTube
Leave a Reply
You must be logged in to post a comment.