BÂRRX Medical Inc., a leader in developing minimally invasive medical devices used in conjunction with endoscopy to remove precancerous tissue from the gastrointestinal tract, announces today that they have signed a definitive agreement to be acquired by Covidien. Covidien is a leading global provider of healthcare products and a worldwide leader in advanced energy-based devices.
Covidien will acquire all of the outstanding capital stock of BÂRRX, a private company, for approximately $325 million, with additional future earn out payments possible upon achievement of company milestones. The transaction, subject to customary closing conditions, is expected to be completed by January 31, 2012.
“We are extremely pleased that Covidien has elected to acquire BÂRRX, as this will allow us to continue our growth and avail our endoscopic therapy to patients with Barrett’s esophagus and esophageal squamous cell neoplasia on a worldwide basis”
BÂRRX developed and markets the HALOFLEX ablation system, inclusive of a radiofrequency generator and numerous ablation catheters, HALO90, HALO90 ULTRA, and HALO360+. The HALO ablation catheters deliver RF energy to diseased tissue in the gastrointestinal tract resulting in a uniform and repeatable depth of ablation. Surgeons and gastroenterologists use the HALO devices during non-surgical endoscopic procedures to remove pre-cancerous and cancerous tissue from the gastrointestinal tract and to reduce bleeding associated with certain chronic disease states.
“We are extremely pleased that Covidien has elected to acquire BÂRRX, as this will allow us to continue our growth and avail our endoscopic therapy to patients with Barrett’s esophagus and esophageal squamous cell neoplasia on a worldwide basis,” said Greg Barrett, President and CEO, BÂRRX Medical. “Covidien is a global leader in multiple disciplines of surgery and the acquisition of BÂRRX will allow them to leverage their expertise and resources in the growing field of endoscopy and gastrointestinal disorders.”
“BÂRRX Medical products and technology complement our current portfolio of energy-based products and will broaden our presence in the global gastrointestinal market,” said Bryan Hanson, Group President, Surgical Solutions. “At the same time, patients will benefit from advances in RF technologies that will change the standard of care for esophageal diseases from invasive surgery to therapeutic intervention. Covidien offers advantages to BÂRRX Medical that support its mission in long-term growth and value to patients. We expect to leverage the BÂRRX technology and capabilities as a platform to accelerate global expansion.”
Source: Barrx Medical