Medtronic Acquires Sapiens For $200M, Bolsters Neuromodulation Business
By Jof Enriquez,
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Medtronic recently purchased the Dutch firm Sapiens Steering Brain Stimulation (Sapiens SBS) for $200 million in cash to bolster its neuromodulation business.
With the acquisition, Medtronic will be able to offer Sapiens’ next-generation deep brain stimulation (DBS) device, which utilizes an advanced lead with 40 individual stimulation points that enables precise stimulation of the brain with less side effects, a Medtronic press release stated. The advanced DBS technology is currently under development in Sapiens SBS’ facility in The Netherlands, which Medtronic plans to turn into a global R&D hub for future neuromodulation products.
“Since 2011, Sapiens SBS employees have worked tirelessly to develop an advanced deep brain stimulation system,” Jan Keltjens, CEO at Sapiens SBS, said in the statement. “We are excited to join Medtronic, and look forward to collectively working to bring this and other novel technologies and therapies to neuromodulation patients worldwide that could benefit from them.”
Medtronic said it will work with Sapiens to conduct clinical research and integrate the latter’s DBS technology into its growing lineup of neurostimulators.
“This acquisition may allow us to bring this technology to the market faster,” Lothar Krinke, Ph.D., VP and general manager of the brain modulation business at Medtronic, told the Minneapolis Star Tribune. Krinke told the paper that the new system would “allow more-individualized treatment options and cut down on side effects from existing U.S.-approved devices, including speech and swallowing disorders, muscle spasms and sensory disturbances.”
Medtronic said in its statement that more than 115,000 patients have benefited from the company’s DBS neurostimulators used to treat Parkinson's disease, chronic intractable primary dystonia, and essential tremor in the U.S. The devices are also used to treat obsessive-compulsive disorder in the U.S., Australia, and the European Union, under a Humanitarian Device Exemption (HDE).
“This acquisition broadens our neuroscience leadership position with innovative brain modulation technology that, along with our comprehensive portfolio of DBS solutions, may one day transform the way physicians are able to treat patients with neurodegenerative diseases like Parkinson's disease and essential tremor,” Krinke said in the press release.
Just a day after announcing the Sapiens deal, Medtronic also declared its acquisition of hospital services firm NGC Medical for $350 million, according to a Wall Street Journal report. It has also agreed to merge with Covidien in June.