Medtronic to Acquire CoreValve, Inc.
Medtronic Targets Leadership Role in High-Growth Aortic Transcatheter Valves
MINNEAPOLIS – Medtronic, Inc. (NYSE: MDT) announced today it has signed a definitive agreement to acquire CoreValve, Inc., developer of a transcatheter, transfemoral aortic valve replacement product. This non-surgical, alternative offers the large number of high or prohibitive surgical risk patients an opportunity to have their aortic valves replaced using a catheter inserted through an artery in the groin. The agreement calls for an initial payment of $700 million plus additional payments contingent upon the achievement of agreed milestones.
“The acquisition of CoreValve gives additional momentum to our strategies for growth and will improve the quality of care for more than 300,000 people worldwide with severe aortic stenosis,” said Bill Hawkins, chairman and CEO of Medtronic. “Our manufacturing and global distribution strengths will accelerate the use of this life-saving technology.”
Jacques Sequin, founder and chairman of CoreValve, added, “We are thrilled to have secured a transaction with Medtronic, which will ensure that more patients have access to this revolutionary technology.” Daniel Lemaitre, president and CEO of CoreValve, commented, “We are proud the CoreValve ReValving system has achieved more than 2,600 implants at 125 centers in 25 countries around the world. The combined Medtronic and CoreValve team has great strength, depth and experience, and we look forward to further success.”
In a separate release, Medtronic announced today it signed an agreement to acquire Ventor Technologies Ltd. Together, these acquisitions represent Medtronic’s commitment to innovation in cardiovascular medicine.
Privately-held CoreValve was founded in 2001 and performed its first in man transcatheter valve procedure in 2004. Its ReValving System received CE Mark approval in 2007 and has since become a technology leader in percutaneous aortic valve replacement. The ReValving System is comprised of a porcine pericardial tissue value, mounted on a self-expanding frame and implanted via a low profile (18F) delivery catheter. CoreValve is based in Irvine, Calif.
Medtronic, Inc. (www.medtronic.com), headquartered in Minneapolis, is the global leader in medical technology – alleviating pain, restoring health and extending life for millions of people around the world.
* The CoreValve ReValving System is not currently available in the USA for clinical trials or for commercialization. Non-USA clinical evaluation is in progress. Not available for sale. ReValving and CoreValve are trademarks of CoreValve, Inc.
Any forward-looking statements are subject to risks and uncertainties. Medtronic cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Forward looking statements include, but are not limited to, statements about the benefits of the acquisition, including future financial and operating results, post-acquisition plans, objectives, expectations and intentions and other statements that are not historical facts. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the risk that the businesses will not be integrated successfully; the risk that the cost savings and any other synergies from the acquisition may not be fully realized or may take longer to realize than expected; disruption from the acquisition making it more difficult to maintain relationships with customers, employees or suppliers; and competition and its effect on pricing, spending, third-party relationships and revenues. Additional factors that may affect future results are contained in Medtronic’s Annual Report on Form 10-K for the year ended April 25, 2008. Actual results may differ materially from anticipated results. Medtronic disclaims any obligation to update and revise statements contained in this release based on new information or otherwise.
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