Medtronic Acquires Medina Medical
August 31 2015 - 06:07PM
Medina Medical
Breakthrough Aneurysm Embolization Mesh
Technology Expands Hemorrhagic Stroke
Portfolio
DUBLIN-- August 31, 2015 -- Medtronic plc
(NYSE:MDT) today announced it has acquired Medina Medical, a Menlo
Park, Calif.-based and privately-held medical device company
focused on commercializing state-of-the-art treatments for vascular
abnormalities of the brain including cerebral aneurysms. This
acquisition is another example of the company's commitment to its
key growth strategy of therapy innovation.
"Medtronic is committed to fighting stroke through
the innovative therapies we bring to clinicians and patients.
Medina Medical's breakthrough technology makes it a natural fit
with our Neurovascular portfolio, further strengthening our
hemorrhagic stroke portfolio," said Brett Wall, president of the
Neurovascular division, which is part of the Restorative Therapies
Group at Medtronic. "The Medina(TM) embolization device features
advanced technology to treat cerebral aneurysms that we think can
one day disrupt the coil market."
The Medina Embolization Device(TM) is an
intrasaccular 3D mesh implant that fills the inside of a brain
aneurysm. This technology is designed to address clinical needs by
featuring an implant with 3D self-expandable mesh that provides a
scaffold across the aneurysm neck; conforms to the shape of the
aneurysm; and reduces blood flow.
"This acquisition offers Medina Medical a unique
opportunity to bring together our breakthrough technologies with
Medtronic's leading clinical, regulatory, market development, and
commercial expertise," said Erik Engelson, CEO of Medina Medical.
"We look forward to working closely with Medtronic to provide
expanded access and economic efficiencies to our clinical partners
in fighting stroke - particularly aneurysms and hemorrhagic
stroke."
A cerebral aneurysm is a weak or thin spot on a
blood vessel in the brain that balloons out and fills with
blood. The aneurysm can put pressure on nerves or brain
tissue, or may leak or rupture (hemorrhage). This technology
complements Medtronic's best-in-class neurovascular portfolio.
Nearly 6 million people in the U.S. have an aneurysm (most are
unruptured and undiagnosed). More than 35,000 patients are treated
endovascularly per year (both ruptured and unruptured) and 21,000
are treated surgically per year (both ruptured and unruptured).
The Medina Embolization
Device has CE Mark authorization for commercial
distribution in the European Union. It is not available for
commercial distribution in the U.S.
The all-cash transaction included an initial
payment of $150 million plus additional payments upon achievement
of key milestones. Medtronic had previously invested in
Medina Medical and held an ownership stake in the company prior to
completion of the acquisition, which will result in a pre-tax gain
in the second quarter of fiscal year 2016. Additional terms
of the acquisition were not disclosed. 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 as the
company intends to offset any dilutive impact of the
transaction. Medtronic will report the Medina Medical product
line as part of its Neurovascular division within the Restorative
Therapies Group.
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 Medina
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 Medina Medical operations into
Medtronic's, delays or obstacles in realizing the anticipated
future benefits (including cost savings and other synergies)
resulting from the acquisition of Medina 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-
Contacts:
David Young
Public Relations
+1-508-452-1644
Ryan Weispfenning
Investor Relations
+1-763-505-4626
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
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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#1948875
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