Medtronic (NYSE:MDT) said today it acquired Campbell, Calif.-based stent-retriever cover developer Lazarus Effect for $100 million in an all-cash transaction.
Lazarus’ Cover device is designed to wrap stent retriever devices with a novel nitinol “mesh cover” that folds over the retreiver during clot retrieval and “candy wraps” the stent with the clot contained, Fridely, Minn.-based Medtronic said.
“With this acquisition, Medtronic reinforces its commitment to providing innovative solutions to clinicians and patients fighting stroke. Lazarus Effect’s ‘mesh cover’ technology complements our ischemic stroke portfolio, and further enhances our neurovascular business’s ability to deliver next generation technologies,” neurovascular division prez Brett Wall said in a press release.
Medtronic said the Lazarus Cover device would be “complimentary” to its Solitaire stent, originally developed by Covidien and FDA cleared in March 2012.
“Medtronic has been a significant supporter of the recent clinical work showing improved outcomes of ischemic stroke patients treated with endovascular therapy. Their support of data driven clinical evidence and the success with their Solitaire stent retriever device make them the clear market leader for treating ischemic stroke. Lazarus Effect is pleased to bring our innovative technologies together with Medtronic’s market leading therapies. We look forward to working closely with Medtronic to bring this next generation platform forward to the benefit of future patients,” Lazarus Effect CEO Martin Dieck said in prepared remarks.
The Lazarus Cover won CE Mark approval in the European Union in November 2014, but its regulatory status with the FDA is still pending, Medtronic said.
Medtronic said the acquisition would be “earnings neutral” for its fiscal year 2016.
Medtronic has spent $1.15 billion on mergers and acquistion since CEO Omar Ishrak said in early June that the world’s largest pure-play medtech maker would look for small-scale investments. That’s Medtronic’s announced spend on M&A since June 5, when Ishrak said the company would turn its attention to snatching up early-stage firms.