• Boston Scientific (Natick, Massachusetts) reported that it will acquire Atritech (Plymouth, Minnesota), a company that has developed a device designed to close the left atrial appendage (LAA) in patients with atrial fibrillation who are at risk for ischemic stroke for an upfront payment of $100 million plus additional potential payments of up to $275 million upon achievement of specified regulatory and revenue-based milestones through 2015 with the closing of the transaction expected to be completed in 1Q11. The company also reported that it has acquired Intelect Medical (Boston), a development-stage company. The transaction values Intelect Medical at $78 million with no cash and no debt on its balance sheet. As a result of Boston Scientific's existing equity and debt positions in Intelect Medical, the total cash payment by Boston Scientific was nearly $60 million, which was funded with cash on hand. Intelect is developing advanced neuromodulation technologies for deep brain stimulation therapy. The company also reported the completion of its $193 million acquisition of Sadra Medical (Los Gatos, California). The transaction follows the definitive merger agreement first reported in November. Boston Sci paid $193 million to acquire the remaining 86% of Sadra's equity not already owned by the company. Additional payments of up to $193 million are contingent upon achievement of specified regulatory and revenue-based criteria through 2016. Sadra is developing the first fully repositionable device for percutaneous aortic valve replacement to treat patients with severe aortic stenosis.
• Globus Medical (Audobon, Pennsylvania), a privately held spinal implant manufacturer, said it has acquired substantially all of the assets of Facet Solutions (Hopkinton, Massachusetts). Financial terms of the deal were not disclosed. Facet develops total facet athroplasty devices.
• Hologic (Bedford, Massachusetts) has acquired Interlace Medical (Framingham, Massachusetts), a privately held company, that develops the hysteroscopic tissue removal system MyoSure. The purchase price for the transaction was $125 million in cash, subject to adjustment, plus two annual contingent payments. The contingent payments will be payable in cash and each will be calculated as a multiple of the incremental revenue growth over the prior year.
• McKesson (San Francisco), a healthcare services and information technology company, said that it has completed its acquisition of US Oncology (The Woodlands, Texas), an integrated oncology company that serves a network of community-based oncologists.
The total transaction, including the assumption or repayment of the outstanding debt of US Oncology and its subsidiaries, was valued at about $2.2 billion. The cash consideration paid by McKesson at the merger closing was about $415 million.
• Medtronic (Minneapolis) said it has completed its acquisition of Ardian (Mountain View, California), a developer of catheter-based therapies to treat hypertension and related conditions, for $800 million in cash up front plus additional cash payments equal to annual revenue growth through the end of Medtronic's fiscal year 2015. Medtronic already had an 11.3% ownership stake in the company. The deal was first disclosed in November.
• Satiety (Palo Alto, California), a firm that has developed a device to treat obesity, is looking for a buyer for its assets due to a difficult regulatory approval process. Satiety's decision comes on the heels of receiving nearly $86 million in funding to bring its device to market. Satiety had tapped Gerbsman Partners to find an acquirer for its assets by Feb. 4. Satiety was founded in 2001 and has developed the Trans-oral Gastroplasty [TOGA] Procedure, which is a technique designed to achieve similar weight loss to restrictive surgeries.
• Stryker (Kalamazoo, Michigan) reported the closing of its previously disclosed $1.5 billion acquisition of the assets of the Neurovascular division of Boston Scientific (Natick, Massachusetts), which includes products used for the minimally invasive treatment of hemorrhagic and ischemic stroke. Of the $1.5 billion sale price, $1.45 billion was received at closing (including an upfront payment of $1.376 billion, a $50 million milestone payment associated with the commercialization of the next-generation Target Detachable Coils, and $24 million which will be placed into escrow to be released upon the completion of local closings in certain foreign jurisdictions). The remaining $50 million will be payable upon the transfer or separation of certain manufacturing facilities.
• Teleflex (Limerick, Pennsylvania) said it has acquired privately-held VasoNova (Menlo Park, California) in a transaction valued at up to $55 million. VasoNova has developed a unique central venous catheter navigation technology that allows for real-time accurate confirmation of placement of peripherally inserted central catheters and central venous catheters in the lower one third of the superior vena cava. Teleflex has acquired VasoNova for an upfront payment of $25 million and will make additional payments of between $15 million and $30 million based upon the achievement of certain regulatory and revenue targets over the next three years.