Thoratec (NSDQ:THOR) said it paid $13 million in up-front cash to acquire the DuraHeart II heart pump from Terumo Corp. (TYO:4543), in a deal worth up to $43.5 million including possible milestone payments.
The deal includes a provision for Pleasanton, Calif.-based Thoratec to take over the DuraHeart development operation Terumo runs in Ann Arbor, Mich., and will see Terumo take the DuraHeart II ventricular assist device to market in Japan and "potentially other parts of Asia," according to a press release.
"Thoratec is committed to delivering a steady cadence of innovative new products to the VAD market in the coming years," Thoratec president & CEO Gary Burbach said in prepared remarks. "DuraHeart II brings a differentiated approach to mechanical circulatory support to Thoratec’s R&D portfolio and will be an integral component of our product development strategy, along with continued evolution of the HeartMate II system, next-generation pump platforms including HeartMate III and HeartMate PHP, which are expected to begin pivotal CE Mark trials in the second half of 2013, and breakthrough cross-platform technologies such as our fully implantable system."
The DuraHeart II device differs from Thoratec’s stable of heart pumps in that it uses a "force balance" suspension designed to minimize damage to blood cells that can lead to complications like blood clots or stroke.
"Terumo believes that the transfer of the development of DuraHeart II to Thoratec is the best and fastest way to commercialize the technology and to ensure access for patients in Japan, the U.S., and the rest of the world. We are pleased that Thoratec recognizes the value of the DuraHeart II platform and will be applying its expertise and resources to develop and bring this exciting product to market," Terumo president Yutaro Shintaku said in prepared remarks.
Thoratec said it plans to shepherd the device through product development and into clinical trials, expecting a first-in-human implant in 2016. The deal will add between $6 million and $7 million during the 2nd half of this year, according to the release.