ev3 to Acquire Chestnut Medical Technologies
Posted on June 2, 2009
Filed Under Neurovascular
ev3 signed a definitive agreement to acquire Chestnut Medical Technologies, the developer of the Pipeline Embolization Device for cerebral aneurysm repair. The transaction will add unique, paradigm shifting technology to ev3 neurovascular franchise.
ev3 agreed to to pay a an upfront consideration of $75 million paid upon closing, 35% in cash 65% in ev3 shares. Additional milestone-based contingent payment of up to $75 million is payable upon the receipt of U.S. FDA pre-market approval of the Pipeline device.
Robert Palmisano, president and chief executive officer of ev3 indicated that the acquisition directly supports ev3 strategy of bringing breakthrough neurovascular therapies to markets which is a clear validation of the flow diversion concept for endovascular cerebral aneurysm repair.
Chestnut’s Pipeline technology is a new class of embolization device that is designed to divert blood flow away from the aneurysm in order to provide a complete and durable aneurysm embolization while maintaining patency of the parent vessel.
Pipeline Embolization Device has already received CE Mark approval in Europe and Chestnut is currently conducting two clinical studies under U.S. FDA investigational device exemptions (IDE) to gain approval for Device in the United States.
According to Saruhan Cekirge, professor of neuroradiology and interventional neuroradiology at the Hacettepe University School of Medicine in Ankara, Turkey, early experience suggests that the Pipeline Embolization Device may represent a valuable alternative to current endovascular or surgical treatment options for giant and wide neck aneurysms and that flow diversion technology may account for as many as one-fourth of the treated aneurysm patient population over the next five years.
ev3 estimates that approximately one fourth of worldwide aneurysm treatment procedures could be eligible for treatment with flow diversion devices over the next five years, translating into a market potential of approximately $350 million in 2013.
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