Terumo closes $280m Sequent Medical buyout

Terumo Corp. (TYO:4543) said today that its MicroVention subsidiary closed the $280 million acquisition of Sequent Medical and its Web aneurysm embolization device.

The Web implant is made of a Nitinol mesh that is delivered in a “stent-like” manner and deployed into the pouch formed by an aneurysm in order to prevent blood from flowing in. Sequent won CE Mark approval for the Web system in 2010, and is running an FDA-approved investigational device exemption pivotal trial as it seeks U.S. clearance.

The acquisition includes an extra $100 million in milestones pegged to development and commercial milestones.

“We are very pleased to add Sequent Medical, including its outstanding research and development capacity, its unique Web system and its talented team to the MicroVention family,” MicroVention president & CEO Richard Cappetta said in prepared remarks. “Our goal is to blend the 2 companies together seamlessly and to quickly get to work on adding the Web to our expanding portfolio of neurovascular products.”

Terumo-MicroVention said it plans to integrate most of Sequent’s employees, including 61 based in Aliso Viejo, Calif., into its operations. MicroVention is building a new headquarters in Aliso Viejo that’s slated to be complete in mid-2017. Sequent also has a plant in Bonn, Germany.

In June, Terumo said it received a notice from the FDA lifting all shipping restrictions at its Ann Arbor, Mich., facility that were imposed in 2011 as part of the company’s consent decree.