LivaNova (NSDQ:LIVN) said today that it agreed to a deal for ImThera Medical and its implantable sleep apnea treatment worth $225 million.
San Diego-based ImThera’s flagship product is the Aura6000, an implanted hypoglossal nerve stimulator that won FDA investigational device exemption in November 2014 for a pivotal trial. The device uses a pair of implanted components, one near the collarbone and one in the upper neck, to stimulate tongue muscles to help control upper airway flow and reduce or eliminate sleep apnea.
LivaNova, already in investor in ImThera, said it would pay $78 million up front to acquire the rest of the company, with the remaining $147 million due on regulatory and sales milestones. The deal, slated to close in early 2018, is expected to deliver “near-term” accretion, the company said.
“The ImThera device is highly aligned with our existing neuromodulation business, and we are extremely excited about the opportunity to optimize the technology and fold it into our universal platform. In the near term, we will focus on expanding ImThera’s current commercial presence in the European market, while advancing enrollment in a U.S. Food & Drug Administration pivotal trial,” LivaNova CEO Damien McDonald said in prepared remarks. “The OSA market is large and growing, with many unmet needs. With our strong commercial capabilities and robust manufacturing, we look forward to bringing this innovative technology to the large patient population that has been unsuccessful with other treatments, allowing them to improve their quality of life.”
“ImThera Medical shares LivaNova’s mission to help patients live longer, better lives. We are proud of the accomplishments we have made in developing an effective CPAP alternative for individuals suffering from OSA. This acquisition will benefit healthcare providers, shareholders and most of all, the patients who are at the heart of everything we do,” added ImThera president & CEO Marcelo Lima. “This is the culmination of several years of hard work by our team of dedicated professionals. We welcome the opportunity to become part of the LivaNova family and look forward to the continued evolution of our product.”
Earlier this month LivaNova, formed by the $2.7 billion merger of Italy’s Sorin and Cyberonics in October 2015, inked a deal to sell its cardiac rhythm management business to China’s MicroPort Scientific (HK:00853) for $190 million in cash.