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|Medtronic Acquires Lazarus Effect|
Lazarus Effect's Innovative "Mesh Cover" Technology is Complementary to
DUBLIN - September 28, 2015 - Medtronic plc (NYSE:MDT) today announced it has acquired Lazarus Effect, a Campbell, Calif.-based and privately-held medical device company focused on acute ischemic stroke products that facilitate the capture and removal of clots. The acquisition is another example of the company's commitment to its key growth strategy of therapy innovation.
The Lazarus Effect acquisition by Medtronic is an all-cash transaction of $100 million at closing.
"With this acquisition, Medtronic reinforces its commitment to providing innovative solutions to clinicians and patients fighting stroke," said Brett Wall, president of the Neurovascular division, which is part of the Restorative Therapies Group at Medtronic. "Lazarus Effect's 'mesh cover' technology complements our ischemic stroke portfolio, and further enhances our Neurovascular business's ability to deliver next generation technologies."
The Lazarus CoverTM Cover(TM) device is an innovative differentiating technology that is complementary to Medtronic's Solitaire(TM) stent retriever platform. This technology is designed to address clinical needs with a novel nitinol "mesh cover" that folds over a stent retriever device during clot retrieval and "candy wraps" the stent with the clot inside.
"Medtronic has been a significant supporter of the recent clinical work showing improved outcomes of ischemic stroke patients treated with endovascular therapy. Their support of data driven clinical evidence and the success with their SolitaireTM stent retriever device make them the clear market leader for treating ischemic stroke. Lazarus Effect is pleased to bring our innovative technologies together with Medtronic's market leading therapies," said Martin Dieck, Co-Founder, President & CEO, Lazarus Effect. "We look forward to working closely with Medtronic to bring this next generation platform forward to the benefit of future patients."
Recently, the American Heart Association/American Stroke Association (AHA/ASA) published new stroke treatment guidelines that recommend the use of stent retriever technology - such as Medtronic's Solitaire stent retriever device - in conjunction with the current standard of care, IV-tPA for eligible patients. The AHA/ASA guidelines are based on a panel of experts' analysis of the results from five global clinical trials published in The New England Journal of Medicine (NEJM) that found the addition of stent retriever technology, a surgical procedure that manually removes blood clots from the brain, to current medical therapy such as IV-tPA, has a therapeutic benefit over medical therapy alone. The primary stent retriever studied in the five global trials was the Solitaire stent retriever device.
Of the 695,000 acute ischemic stroke victims in the U.S., about 240,000 are eligible for treatment with a stent retriever, like the Solitaire device. However, while these devices are available at more than 500 hospitals in the U.S., only about 13,000 procedures were performed in 2014.
The Lazarus Cover(TM) device is an adjunctive device used in stent retriever procedures and obtained CE Mark authorization in November 2014 for commercial distribution in the European Union; the U.S. regulatory approval process is pending.
The transaction is expected to meet Medtronic's long-term financial metrics for acquisitions. Medtronic expects the net impact from this transaction to be earnings neutral in fiscal year 2016 as the company intends to offset any dilutive impact of the transaction. Medtronic will report the Lazarus Effect product line as part of its Neurovascular division within the Restorative Therapies Group.
This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements include Medtronic's intended business strategy and expectations regarding benefits to Medtronic's operations as a result of the closing of the Lazarus Effect acquisition. The statements in this release are based upon current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including risks related to the integration of Lazarus Effect operations into Medtronic's, delays or obstacles in realizing the anticipated future benefits (including cost savings and other synergies) resulting from the acquisition of Lazarus Effect, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products and services, government regulation, general economic conditions and other risks and uncertainties set forth in Medtronic's periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward- looking statements.