MANSFIELD – Medical device maker Covidien PLC has signed a definitive agreement to acquire Freemont, Calif.-based CV Ingenuity during the first quarter of 2013, the company announced Wednesday. Financial terms of the deal were not disclosed.
CV Ingenuity is a privately-held company that has developed a product designed to improve treatment of peripheral arterial disease by relieving vascular obstructions, inhibiting restenosis and allowing natural vessel healing.
The company’s core technology, a drug-coated balloon platform, is not yet on the market. Once the transaction is complete, 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,” Stacy Enxing Seng, president of Vascular Therapies at Covidien, said in a statement.
“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,” added Enxing Seng.
Covidien expects to increase research and development expenditures for the next several years in order to fund the clinical development of CV’s drug-coated balloon technology.
According to a release, 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.
The company said it does not anticipate receiving U.S. Food and Drug Administration approval for a drug-coated balloon product based on CV technology until fiscal year 2017.