Volcano To Acquire Atherectomy Device Maker AtheroMed For $115 Million
By Jof Enriquez,
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Intravascular imaging and precision guided therapeutic device company Volcano Corp. recently signed an agreement to acquire AtheroMed, manufacturer of the FDA-approved Phoenix device for treatment of peripheral artery disease (PAD).
Per the terms of the deal, which is expected to close in the current quarter, AtheroMed will receive an upfront cash payment of $115 million, an additional $15 million if a newer version of its Phoenix device is cleared by the FDA by November 15, 2014, plus potential future revenue-based milestone payments from Volcano, according to a press release.
“This transaction is an important milestone in Volcano's strategy to offer a growing and diversified portfolio of therapeutic devices that provide clinical and economic benefits as we continue our evolution from a leader in coronary and peripheral intravascular imaging and physiology to a company providing a broad range of diagnostic and therapeutic solutions,” Scott Huennekens, Volcano’s president and CEO, said in the statement.
Huennekens said that the company is aiming for a limited market release of the Phoenix atherectomy system by the end of 2014 and a full market release by 2015. According to the press release, the device will initially be produced in AtheroMed’s plant in Menlo Park, CA, but manufacturing will eventually be transferred to Volcano’s facility in Costa Rica by late 2015.
The Phoenix system, along with Volcano’s other recently acquired products — the Pioneer Re-Entry catheter and the Crux vena cava filter — will give the company three highly differentiated therapeutic devices in the market. According to Volcano, the worldwide atherectomy market is growing 7 percent annually and is worth between $350 and $400 million.
AtheroMed describes the Phoenix as an over-the-wire device with a front-cutting blade at the distal tip of the catheter. The device was granted 510(k) clearance by the FDA in January 2014 and has a CE mark.
“Phoenix is a unique atherectomy device in that it continuously cuts, captures and clears debris without the need for capital equipment,” Dr. Neil Hattangadi, Volcano’s executive VP, peripheral vascular and global clinical affairs, said in the company’s statement.
“We are delighted to be joining Volcano to advance this important treatment of PAD, which affects more than 18 million patients in the U.S.,” Mike MacKinnon, president and CEO of AtheroMed, said in the statement. “Volcano has built a strong and rapidly growing presence in the peripheral therapeutic arena and we believe their manufacturing, distribution and clinical capabilities will establish a strong market presence for the Phoenix System.”