LivaNova (NSDQ:LIVN) yesterday said it put up $72 million to acquire the remaining stake in Caisson Interventional, which is developing a implantable device to replace the heart’s mitral valve.
Maple Grove, Minn.-based Caisson’s transcatheter mitral valve replacement is designed to be delivered across the heaert’s septum via the femoral vein and can be repositioned or withdrawn before final deployment. The 1st patients in the 20-patient Prelude investigational device exemption study were implanted with the device last year.
LivaNova said it put up $18 million when the deal closed and is slated to pay out the rest of the $72 million, which does not include about $6 million in forgiven debt, as Caisson hits regulatory and sales milestones. The London-based company, formed in 2015 by the $1.4 billion merger of Sorin and Cyberonics, owned a 49% stake in Caisson before the buyout.
“We look forward to joining LivaNova to combine our efforts in bringing a superior technology to market,” Caisson CEO & co-founder Dr. C.J. Schweich Jr. said in prepared remarks.
“We created this percutaneous mitral valve replacement implant, procedure and delivery system to offer a significant new therapy to patients with severe mitral regurgitation,” added COO & co-founder Todd Mortier.
“We recognized the potential of the talented Caisson team and its technology several years ago. This team will now be the cornerstone for our planned entry into the TMVR space, which has the potential to be an important growth platform for us in the future,” LivaNova CEO Damien McDonald said. “We intend to invest in the clinical studies, regulatory approvals, product enhancements and other steps needed to launch this mitral valve replacement system commercially. We expect it will become a strategic complement to our heart valve portfolio for heart team physicians, allowing us to offer patients the most advanced, minimally invasive mitral valve replacement option.”
LivaNova said it expects to log a pre-tax, non-cash gain of $15 million during the 2nd quarter on the $15 million value of its previous stake in Caisson and will delineate the dilutive impact of the acquisition during its earnings call later today.
