A Medical Device Daily
Bayer Healthcare (Leverkusen, Germany) said its affiliate, Medrad (Warrendale, Pennsylvania) has acquired Pathway Medical Technologies (Kirkland, Washington). Financial terms of the agreement were not disclosed. With this acquisition, Bayer said it is strengthening its Medrad Interventional business by expanding its presence in the field of vascular intervention technologies.
Pathway specializes in mechanical atherectomy in the field of vascular intervention. The company's products clear out blockages in the leg, also known as Peripheral Arterial Disease (PAD). Pathway's Jetstream devices allow for a minimally invasive procedure designed to restore circulation in the peripheral arteries by reducing vascular narrowing caused by plaque. With differential cutting, Jetstream products are designed to remove plaque without harming healthy tissue.
“The combination of Medrad and Pathway Medical Technologies underscores our strategic commitment to the treatment of patients in the growing interventional field,“ said Jorg Reinhardt, MD, chairman of the board of management of Bayer Healthcare. “Pathway's products complement Medrad Interventional's current and future portfolio including our injectors, thrombectomy devices and the Cotavance paclitaxel coated balloon catheter with Paccocath technology and will enable us to extend value to customers and patients through broader product options to diagnose and treat PAD.“
Medrad currently has offerings in peripheral artery disease (PAD) treatment with its AngioJet and Cotavance products. With the addition of Pathway's Jetstream product, Medrad says it now offers a full range of product options for treatment of PAD.
The Cotavance catheter received CE mark certification in Europe in 2011. Medrad Interventional is also moving forward with the Investigational Device Exemption (IDE) process as one of the steps in gaining FDA approval for Cotavance product in the U.S.
In other dealmaking activity:
• Sectra (Linköping, Sweden) has completed a mammography-modality deal with Royal Philips Electronics (Chalfont, UK). Philips will pay €57.5 million ($82.01 million) in a cash-on-cash and debt-free basis and take over the acquired modality immediately.
The divested operation represented 14% of the Sectra Group's net sales for fiscal year 2010/2011 and has approximately 110 employees. The transaction comprises Sectra's mammography-modality operations worldwide, except for Australia and New Zealand where Sectra will continue to sell and service the unique MicroDose mammography modality under a separate distribution agreement with Philips.
The agreement includes an additional earn-out of €12.5 million ($17.83 million), which will fall due if the agreed terms and conditions are achieved over a period of five years. This transaction, excluding the possible earn-out, is estimated to generate a capital gain in terms of earnings of about SEK300 million after tax for Sectra.
“The deal with Philips will give us the resources we need to continue our efforts and expand our business. In Medical Systems, we can concentrate on our core business and aim for a larger share of the market growth for medical imaging IT systems, which is growing rapidly,“ said Torbjorn Kronander, president of Sectra's medical systems operation.
Sectra makes IT systems and products for radiology, mammography and orthopaedics.
• Hillenbrand (Batesville, Indiana), has completed its previously reported acquisition of privately held Rotex Global (Cincinnati) for a purchase price of $240 million in cash, subject to certain post-closing adjustments.
Rotex is a maker of dry material separation machines and replacement parts and accessories used in a broad range of domestic and international industries.
“We're delighted to welcome this dynamic management team and workforce to our family of companies,“ said Kenneth Camp, Hillenbrand's president/CEO. “The addition of Rotex advances Hillenbrand's transformation into a diversified industrial equipment company – a process that began with the acquisition of K-Tron International in April of 2010. With Rotex, more than one-third of Hillenbrand's revenue will come from the Process Equipment Group as we continue to expand our manufacturing portfolio.“