St. Jude Medical, Inc. has completed the acquisition of Spinal Modulation, Inc., developer of the Axium™ Neurostimulator System.
It’s almost two years since St. Jude made a significant ($40M) investment in Spinal Modulation, Inc., in a deal we advertised at the time as “try before you buy” because it contained an option to buy the company. A few weeks ago St. Jude announced that it was to do just that in a deal worth approximately $175 million upon closing with additional payments due upon FDA approval of the Axium system and achievement of certain revenue targets. The system currently has CE Mark approval for the management of chronic intractable pain and TGA approval in Australia for the management of chronic, intractable pain of the trunk and/or limbs.
The Axium Neurostimulator System delivers a form of spinal cord stimulation (SCS) targeting the dorsal root ganglion (DRG), small structures that contain nerve fibers, which carry signals to the brain. Stimulating the DRG addresses chronic pain conditions that are apparently currently underserved by traditional SCS technologies and techniques, providing more targeted therapy to patients who have lower extremity pain or very specific areas of pain that are known to be difficult to treat with traditional neurostimulation systems.
The Axium Neurostimulator differs from traditional SCS technologies in that its leads are placed at the DRG, rather than along the dorsal column. As such they provide targeted stimulation to areas that are typically hard to treat, including the lower leg, foot and groin. The system also claims to use approximately 95 percent less power than traditional SCS therapy.
With the acquisition, St. Jude has become the only medical device manufacturer in the world to offer a bag including radiofrequency ablation (RFA), spinal cord stimulation (SCS) and dorsal root ganglion (DRG) stimulation therapy solutions for the treatment of chronic pain.
Commenting on the acquisition, St. Jude Medical’s chief operating officer Michael T. Rousseau said: “Completing the acquisition of Spinal Modulation, Inc. is another important step forward in building momentum and accelerating sales growth across our neuromodulation product portfolio. We’re confident the Axium system will further support our goal of providing physicians multiple options to tailor treatment for patients with chronic pain.”
Source: Business Wire