Medtronic plc (NYSE:MDT
http://www.medtronic.com/ ) today announced it has signed a definitive
agreement to acquire RF Surgical Systems, Inc., a medical device company
based in Carlsbad, Calif., focused on the detection and prevention of
retained surgical items (sponge, gauze or towel) for approximately $235
million. Additional terms of the acquisition were not disclosed.
Despite rigorous surgical sponge counting protocols and medical
society-driven awareness efforts, occasionally surgical items are left
inside patients after wound closure. A sponge, gauze or towel left
inside a patient may require additional x-rays and corrective surgical
procedures to remove the retained surgical items. Left untreated,
retained surgical items could cause serious and life-threatening issues
such as intra-abdominal abscess, intestinal fistula or obstruction,
perforated colon, hemorrhaging or infection.
The RF Surgical system is designed to be used as an adjunct to manual
counting methods to help prevent such surgical sponge-related "never
events," which are serious, largely preventable, and harmful clinical
events. The proprietary detection system uses a low radio frequency (RF)
signal to track and detect surgical gauze, sponges and towels (embedded
with a RF tag) through blood, dense tissue and bone. The technology aims
to reduce patient complications due to surgery, lessen unnecessary
procedures, and increase efficiencies within the operating room.
"Patients are our priority. Improving patient safety and outcomes is our
daily focus, which directly aligns with the RF Surgical technology, a
simple and cost-effective solution to avoidable complications in
surgical procedures," said Chris Barry, senior vice president and
president of the Surgical Innovations business, Minimally Invasive
Therapies Group at Medtronic.
"We are pleased to be joining the Medtronic team as their long-standing
commitment to patient safety closely aligns with RF Surgical" said John
T. Buhler, CEO of RF Surgical, Inc. "As we strive to make the RF
Surgical technology the global standard of care, we look forward to the
innovation opportunity afforded by our combined capabilities."
This acquisition supports Medtronic's economic value strategy.
Partnering with stakeholders in healthcare, Medtronic is moving to offer
products and services that deliver clinical and economic value to the
healthcare system. Medtronic is focused on leading the shift to value
based healthcare, which rewards those who can deliver quality healthcare
to more people at the most affordable cost.
Medtronic will report the RF Surgical business as part of its Surgical
Solutions division within the Minimally Invasive Technologies Group. The
transaction is expected to meet Medtronic's long-term financial metrics
for acquisitions, and the annualized earnings impact of this acquisition
is not expected to be material. The deal is expected to close in August
2015, pending regulatory approvals.
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