Covidien has announced a definitive agreement to acquire CV Ingenuity. The companies expect to complete the acquisition in the first calendar quarter of 2013.
California based CV Ingenuity, is focused on improving patient outcomes in the treatment of peripheral arterial disease (PAD) by providing solutions to relieve vascular obstructions, inhibit restenosis, and allow natural vessel healing. The company’s core technology, while still in the investigational phase, is a Drug Coated Balloon (DCB) platform with a novel, proprietary, tunable, rapid-release system.
Financial terms of the transaction were not disclosed, but one result of this transaction is that Covidien has said that it expects to increase research and development expenditures for the next several years to fund the clinical development of CV Ingenuity technologies. Additional expenditures are expected to be more than $20 million in the second half of fiscal 2013 and more than $30 million in fiscal 2014.
Covidien does not anticipate receiving U.S. FDA approval for a DCB product using the CV Ingenuity technology until fiscal 2017.
Once the transaction has been completed, Covidien will report the CV Ingenuity business as part of its Vascular product line in the Medical Devices segment.
“We continue to be focused on technologies that deliver improved patient care, delighting both our physician and hospital system customers,” said Stacy Enxing Seng, President, Vascular Therapies, Covidien. “CV Ingenuity offers a robust DCB portfolio, and offering a DCB technology is something that we believe is necessary to continue to improve care for patients suffering from PAD, as well as ensuring we are a full line partner with our customers today and into the future.”
Source: Covidien, Business Wire