A Medical Device Daily
Concentric Medical (Mountain View, California), a leader in acute ischemic stroke intervention, said that Stryker (Kalamazoo, Michigan) has signed a definitive agreement to acquire Concentric Medical for $135 million in an all-cash transaction. The acquisition, pending customary regulatory approvals, is expected to close early 4Q11.
Stryker says the acquisition of Concentric Medical provides it with immediate entry into the fastest growing and most innovative segment of the interventional neurovascular space. Ischemic stroke represents the vast majority of all strokes, and this strategic acquisition offers Stryker immediate access into the rapidly expanding Acute Ischemic Stroke segment with a proven technology leader.
Concentric Medical makes minimally invasive devices that are endovascularly delivered to the brain to remove blood clots that cause ischemic stroke. Concentric was a pioneer in the development of acute ischemic stroke treatments with the launch of the first Merci Retriever in 2004. Most recently, the company launched the Trevo Retriever in Europe in 2010. The Trevo Retriever is the first device utilizing Stentriever technology, a novel approach to retrieving clots from the neurovasculature. The Trevo Retriever is currently being evaluated in the TREVO 2 Trial, a pivotal clinical trial investigating the safety and efficacy of the Trevo Retriever.
“We believe Stryker is the ideal strategic partner for Concentric and combining Concentric with Stryker's Neurovascular division will provide opportunities to accelerate the development of technology and clinical evidence and will allow the commercial expansion of Concentric's ischemic stroke therapy globally. Our team is excited to be joining the Stryker organization,“ said Maria Sainz, president/CEO of Concentric Medical.
In other dealmaking, Medtronic (Minneapolis) said it has completed the acquisition of two privately-held companies, PEAK Surgical (Palo Alto, California) and Salient Surgical Technologies (Portsmouth, New Hampshire). Both of the companies are focused on advanced energy surgical technologies and will broaden Medtronic Surgical Technologies' portfolio of innovative surgical products to meet customer and patient needs worldwide, Medtronic said.
PEAK Surgical specializes in advanced energy surgical incision technology, including its PlasmaBlade cutting technology that is cleared for use in a variety of settings, including Ear, Nose and Throat (ENT), plastic reconstructive and general surgical applications. Under the terms of the agreement (Medical Device Daily, July 8, 2011), the total value of the transaction is $120 million. Medtronic had previously invested in PEAK and held an ownership stake in the company prior to completion of the acquisition. Net of this ownership stake, the transaction value is approximately $105 million. PEAK's revenue is annualizing at approximately $20 million and has shown consistent rapid growth.
Salient Surgical Technologies specializes in advanced energy for haemostatic sealing of soft tissue and bone, including its Transcollation technology that is cleared for use in a variety of surgical procedures including orthopedic surgery, spine, open abdominal and thoracic procedures. Under the terms of the agreement (MDD, July 8, 2011), the total value of the transaction is $525 million. Medtronic had previously invested in Salient and held an ownership stake in the company prior to completion of the acquisition. Net of this ownership stake, the transaction value is approximately $480 million. Salient's revenue is annualizing at approximately $100 million and has shown consistent rapid growth.