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In support of the company's therapy
innovation strategy, Medtronic plc
today announced that it
has signed a definitive agreement to acquire Twelve, Inc. ("Twelve"), a
privately-held medical device company based in Redwood City, Calif.,
focused on the development of a transcatheter mitral valve replacement
(TMVR) device. Twelve is the twelfth company spun out from the premier
medical device incubator The Foundry.
"Upon close, this acquisition will strategically augment our existing
capabilities in the transcatheter mitral space, which represents an
important growth opportunity for Medtronic," said Sean Salmon, senior
vice president and president, Coronary & Structural Heart, Medtronic.
"We have followed the transcatheter mitral valve space closely and
firmly believe that Twelve has the most novel technology along with a
strong, proven team. The combined strengths of our organizations will
significantly accelerate our ability to deliver an exciting and
differentiated therapy to patients, physicians and healthcare systems
around the world."
Mitral regurgitation occurs when the heart's mitral valve fails to close
normally, allowing blood to flow backward when the heart contracts. Over
time, this will lead to declining heart function and heart failure. The
TMVR device under development is being designed to treat patients with
mitral valve regurgitation in whom standard restorative surgery is not
recommended. The majority of these patients are largely underserved with
limited treatment options.
"Twelve's technology is a truly creative solution that brings together
valve technology with a unique and highly differentiated dual-stent
fixation design," said Andrew Cleeland, president and CEO, Twelve. "Our
acquisition by Medtronic will create a tremendous opportunity to
leverage Medtronic's expertise and proven success in the structural
heart space to advance the treatment of mitral regurgitation."
Medtronic has agreed to pay up to $458 million for Twelve including $408
million at closing and $50 million on achievement of CE Marking. The
cash- and debt-free transaction remains subject to customary closing
conditions, and is expected to close in October 2015. The transaction is
expected to meet Medtronic's long-term financial metrics. Medtronic
expects the net impact from this transaction to be earnings neutral as
the company intends to offset the dilutive impact of the transaction.
Medtronic will manage the Twelve product line as part of the Coronary &
Structural Heart division within the Cardiac and Vascular Group.
"We are keenly focused on improving patient outcomes and expanding
access to care for those who need it most," added Sean Salmon. "We
believe this acquisition will help deliver on this commitment by
enabling Medtronic to bring forward a best-in-class transcatheter mitral
valve replacement device with the potential to transform patient care."
In collaboration with leading clinicians, researchers and scientists
worldwide, Medtronic offers the broadest range of innovative medical
technology for the interventional and surgical treatment of
cardiovascular disease and cardiac arrhythmias. The company strives to
offer products and services that deliver clinical and economic value to
healthcare consumers and providers around the world.
The Twelve, Inc., TMVR device is not for sale in any country.
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