Medtronic Acquires Aircraft Medical to Aid in the Preventable Issue of Respiratory Compromise
November 18 2015 - 8:35AM
Aircraft's
Offering Allows Clinicians a Single, Hybrid Device for All
Intubations
DUBLIN - November 18, 2015 -
In support of the company's therapy innovation strategy, Medtronic
plc (NYSE:MDT) today announced it has acquired Aircraft Medical, a
privately-held medical device company based in Edinburgh, Scotland,
that develops affordable, handheld high-quality video laryngoscopes
used by anesthesiologists and critical care professionals to
intubate patients. The Aircraft Medical acquisition is an all-cash
transaction of $110 million. Additional terms of the acquisition
were not disclosed.
The acquisition expands Medtronic's portfolio of
solutions for dealing with difficult airways and addresses the
preventable issue of respiratory compromise, which consists of
respiratory insufficiency, failure and arrest, dramatically
increases the likelihood of adverse outcomes and cost of patient
care.i, iiIt is
the second-most frequently occurring preventable safety adverse
eventiiiand is
rapidly becoming the third-most costly hospital inpatient expense
in the U.S. i
Aircraft Medical's devices enable clinicians to
see a patient's vocal cords, allowing them to more quickly and
effectively insert the breathing tube into the trachea. Video
laryngoscopy is associated with an increased number of successful
intubations, improved laryngeal views and more successful
first-attempt intubations than direct laryngoscopy among patients
with difficult airways.iv
For an intubated patient, this helps maximize the chance for
first-attempt success and reduces the use of multiple devices.
"Aircraft Medical's offerings complement our
portfolio, helping us further our commitment to reducing incidents
and potential complications from respiratory compromise globally.
The company's laryngoscopes will play an important role in our
airways portfolio as we develop and provide meaningful innovations
that improve patient outcomes," said Steve Blazejewski, senior vice
president and president of the Patient Monitoring & Recovery
business, Minimally Invasive Therapies Group at Medtronic.
"We are pleased to be joining the Medtronic team
as we strive to provide the McGrath® video laryngoscope platform to
many more patients around the world," said Matt McGrath, founder
and CEO of Aircraft Medical.
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 and neutral to accretive to earnings
thereafter. Medtronic will report revenue from the Aircraft
Medical product line as part of its Patient Monitoring &
Recovery division within the Minimally Invasive Therapies
Group.
About Medtronic
Medtronic plc (www.medtronic.com), headquartered in Dublin,
Ireland, is among the world's largest medical technology, services
and solutions companies - alleviating pain, restoring health and
extending life for millions of people around the world. Medtronic
employs more than 85,000 people worldwide, serving physicians,
hospitals and patients in approximately 160 countries. The company
is focused on collaborating with stakeholders around the world to
take healthcare Further, Together.
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 Aircraft
Medical 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 Aircraft Medical's operations
into Medtronic's, delays or obstacles in realizing the anticipated
future benefits (including cost savings and other synergies)
resulting from the acquisition of Aircraft Medical, 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.
-end-
i Wier LM, Henke R, Friedman B. Diagnostic
Groups with Rapidly Increasing Costs, by Payer, 2001-2007:
Statistical Brief #91. Healthcare Cost and Utilization Project
(HCUP) Statistical Briefs. Rockville MD2010.
ii Kelley SA, Agarwal S, Parikh N, Erslon M,
Morris P. Respiratory insufficiency, arrest and failure among
medical patients on the general care floor. Crit
Care Med. 2012;40(12):764.
iii Healthgrades website, "Quality Matters: Tackle
the Top 3 Patient Safety Issues."
https://www.hospitals.healthgrades.com/index.cfm/customers/e-newsletters/april-2013/quality-matters-tackle-the-top-3-patient-safety-issues/,
Accessed October 20, 2015.
iv American Society of Anesthesiologists Task
Force on Management of the Difficult Airway. Practice guidelines
for management of the difficult airway. Anesthesiology.
2013;118(2):251-270.
Contacts:
John Jordan
Public Relations
+1-508-452-4891
Ryan Weispfenning
Investor Relations
+1-763-505-4626
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Medtronic plc via Globenewswire
HUG#1966923
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