Medtech titan St. Jude Medical (NYSE:STJ) officially entered the spinal pain market this week, announcing the close of its $200 million cash acquisition of NeuroTherm.
The deal makes St. Jude the only company in the space with both radiofrequency ablation devices, which came from NeuroTherm, in addition to spinal cord stimulation systems in its chronic pain product portfolio. St. Jude has been bulking up its pain management technologies substantially in recent months.
"Over the last year, we have launched 2 novel neuromodulation products, made a strategic investment in Spinal Modulation, and initiated 2 multi-center, randomized clinical studies to evaluate alternatives for patients living with chronic pain," St. Jude COO Michael Rousseau said in prepared remarks. "This acquisition further demonstrates St. Jude Medical’s commitment to our chronic pain program and our steadfast focus on improving patient outcomes."
St. Jude expects NeuroTherm to add about $10-$15 million to 2014 revenues. Excluding acquisition-related costs, the deal is expected to be neutral to St. Jude’s per-share earnings for the year, but will be accretive thereafter.
NeuroTherm develops minimally invasive radiofrequency ablation systems, intradiscal catheters and a suite of vertebral augmentation technologies. The company was built in part on a 2010 acquisition of Smith & Nephew’s (FTSE:SN, NYSE:SNN) spine pain management line, the terms of which were not disclosed.
ST. Jude’s stock didn’t benefit much from today’s news. STJ shares dropped 1.8% to $63.75 as of about 2:10 p.m. EST.
