Volcano (NSDQ:VOLC) signed a definitive agreement to acquire Crux Biomedical for $36 million in cash, laying out a road map for anticipated FDA wins and commercial launches related to the merger.
Menlo Park, Calif.-based Crux Biomedical is a privately held medical device maker developing inferior vena cava filters for treatment of pulmonary embolisms, an estimated $300 million market in the U.S., according to a Volcano report.
Crux in January 2012 won FDA clearance for its inferior vena cava filter with bi-directional retrieval of blood clots, just a month after winning CE Mark approval for the European Union. Volcano is expecting to submit an FDA application for another Crux retrieval device on or before June 30, 2013.
The terms of the contract include a milestone payment of $3 million in cash upon FDA application submission for the new retrieval device, which is currently under development by Crux, according to a press release. Volcano may also make cash payments for up to 4 years following the merger, based on Crux product sales.
Volcano is expecting to commercially launch Crux’s products by the end of 2013, once it has ramped up full-scale manufacturing at its Rancho Cordova, Calif., manufacturing plant. The companies also plan to pursue regulatory wins for Crux’s VCF system in combination with intravascular imaging technology, according to the report.
The merger is part of Volcano’s strategy to expand further from intravascular imaging into a more diversified range of diagnostic and therapeutic products, Volcano president & CEO Scott Huennekens said in the report. "As we increase our focus on this market, the ability to offer a unique IVC filter and, through further regulatory approvals, use IVUS to facilitate its placement at the bedside, represents compelling clinical and economic value for patients, clinicians and the healthcare system."
"A key element of our growth strategy is to diversify beyond coronary applications and increase penetration of the peripheral market with our imaging technology," he noted.
This latest merger marks Vocano’s 2nd deal in as many weeks. Late last month the device maker signed a definitive agreement to purchase all outstanding shares of Israeli imaging software maker Sync-Rx for a total price of $17.3 million.
VOLC shares were down 2.4% to $26.62 as of about 12:45 p.m. today.
