A Medical Device Daily
Medtronic (Minneapolis) reported that it has completed its previously disclosed $225 million acquisition of privately held Ablation Frontiers (AF; Carlsbad, California) (Medical Device Daily, Jan. 13, 2009).
The transaction includes an initial payment of $225 million plus potential additional payments contingent upon achievement of certain clinical milestones.
Operating within Medtronic's Cardiac Rhythm Disease Management (CRDM) business, Ablation Frontiers and the recently acquired CryoCath Technologies (Montreal) expand the company's recently launched AF Solutions business, Medtronic said.
Medtronic said the goal of its newly formed AF Solutions franchise, led by VP and general manager Reggie Groves, is to be the physician partner of choice for atrial fibrillation (AF) ablation by bringing breakthrough AF therapies to the patients and physicians that are simpler, safer, effective, and offer more predictable procedure times than current treatment methods.
In 2006, Ablation Frontiers received CE Mark to begin marketing its system of catheters and the GENius Radio frequency (RF) Generator in the European Union to treat supraventricular arrhythmias and for use in atrioventricular node ablation. Ablation Frontiers is conducting a clinical trial under an FDA IDE to gain approval of the catheter system for permanent/long-standing persistent/chronic AF in the U.S.
Abbott Laboratories (Abbott Park, Illinois) reported that the U.S. antitrust waiting period for its previously disclosed $2.8 billion cash tender offer (MDD, Jan. 13, 2009) to purchase all of the outstanding shares of Advanced Medical Optics (AMO; Santa Ana, California) has expired.
The expiration of the HSR waiting period satisfies one of the conditions necessary for the consummation of the tender offer. The tender offer is scheduled to expire at midnight EST on Feb. 24, unless it is extended. Abbott commenced the tender offer on Jan. 27 for all of the outstanding shares of AMO common stock for $22 per share in cash.
AMO is comprised of three segments: cataract surgery, laser vision correction (LASIK), and eye care products.
In other dealmaking news, Health Discovery Corp. (HDC; Savannah, Georgia) reported that it has entered into an agreement with Abbott Laboratories to commercialize HDC's new molecular diagnostics gene-based tests for clinically significant prostate cancer. Abbott has acquired co-exclusive clinical laboratory rights and exclusive in vitro diagnostic rights for commercialization of HDC's tissue-based prostate cancer test as well as HDC's urine-based prostate cancer test.
"We are very pleased to partner with Abbott on commercialization of these exciting new molecular diagnostic tests for prostate cancer," said Stephen Barnhill, MD, chairman/CEO of HDC.
HDC also reported that it has licensed rights to develop a new urine-based test for clinically significant prostate cancer to Quest Diagnostics (Madison, New Jersey), a provider of diagnostic testing, information and services. Under the terms of the agreement, HDC will receive payments, royalties and additional undisclosed financial considerations.
HDC is involved in SVM-based molecular diagnostic and prognostic test development in genomics and proteomics, as well as, digital image analysis in pathology and radiology.