Medtronic to Acquire RF Surgical Systems, Developer of Detection System for the Prevention of Retained Surgical Sponges
July 13 2015 - 8:35AM
Technology
Designed to Prevent Surgical-Related "Never Events"
DUBLIN-- July 13, 2015
-- Medtronic plc (NYSE:MDT) today announced it has signed
a definitive agreement to acquire RF Surgical Systems, Inc., a
medical device company based in Carlsbad, Calif., focused on the
detection and prevention of retained surgical items (sponge, gauze
or towel) for approximately $235 million. Additional terms of the
acquisition were not disclosed.
Despite rigorous surgical sponge counting
protocols and medical society-driven awareness efforts,
occasionally surgical items are left inside patients after wound
closure. A sponge, gauze or towel left inside a patient may require
additional x-rays and corrective surgical procedures to remove the
retained surgical items. Left untreated, retained surgical items
could cause serious and life-threatening issues such as
intra-abdominal abscess, intestinal fistula or obstruction,
perforated colon, hemorrhaging or infection.
The RF Surgical system is designed to be used as
an adjunct to manual counting methods to help prevent such surgical
sponge-related "never events," which are serious, largely
preventable, and harmful clinical events. The proprietary detection
system uses a low radio frequency (RF) signal to track and detect
surgical gauze, sponges and towels (embedded with a RF tag) through
blood, dense tissue and bone. The technology aims to reduce patient
complications due to surgery, lessen unnecessary procedures, and
increase efficiencies within the operating room.
"Patients are our priority. Improving patient
safety and outcomes is our daily focus, which directly aligns with
the RF Surgical technology, a simple and cost-effective solution to
avoidable complications in surgical procedures," said Chris Barry,
senior vice president and president of the Surgical Innovations
business, Minimally Invasive Therapies Group at Medtronic.
"We are pleased to be joining the Medtronic team
as their long-standing commitment to patient safety closely aligns
with RF Surgical" said John T. Buhler, CEO of RF Surgical, Inc. "As
we strive to make the RF Surgical technology the global standard of
care, we look forward to the innovation opportunity afforded by our
combined capabilities."
This acquisition supports Medtronic's economic
value strategy. Partnering with stakeholders in healthcare,
Medtronic is moving to offer products and services that deliver
clinical and economic value to the healthcare system. Medtronic is
focused on leading the shift to value based healthcare, which
rewards those who can deliver quality healthcare to more people at
the most affordable cost.
Medtronic will report the RF Surgical business as
part of its Surgical Solutions division within the Minimally
Invasive Technologies Group. The transaction is expected to meet
Medtronic's long-term financial metrics for acquisitions, and the
annualized earnings impact of this acquisition is not expected to
be material. The deal is expected to close in August 2015, pending
regulatory approvals.
Multimedia
To see an animation of the RF Assure Detection System, visit:
https://youtu.be/WJuPPecyIjI
ABOUT
MEDTRONIC
Medtronic plc (www.medtronic.com), headquartered in Dublin,
Ireland, is the global leader in medical technology -- alleviating
pain, restoring health and extending life for millions of people
around the world.
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 RF
Surgical Systems, Inc. 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 RF Surgical'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 RF Surgical,
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 -
Contacts:
John Jordan
Public Relations
+1-508-452-4891
Ryan Weispfenning
Investor Relations
+1-763-505-4626
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information contained therein.
Source: Medtronic plc via Globenewswire
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