Spectranetics Corp. will acquire Covidien’s Stellarex drug-coated angioplasty balloon for $30M

COVIDIEN PLC, whose U.S. headquarters is based in Mansfield, is selling its tellarex drug-coated angioplasty balloon platform for $30 million to Colorado-based Spectranetics Corp. / COURTESY COVIDIEN PLC
COVIDIEN PLC, whose U.S. headquarters is based in Mansfield, is selling its tellarex drug-coated angioplasty balloon platform for $30 million to Colorado-based Spectranetics Corp. / COURTESY COVIDIEN PLC

MANSFIELD – Spectranetics Corp. will acquire Covidien PLC’s Stellarex drug-coated angioplasty balloon platform for $30 million.
The transaction, subject to approval by the Federal Trade Commission and other regulatory agencies, was announced this week. It also depends on the closure of the pending acquisition of Covidien by Medtronic, expected to happen in early 2015.
The Stellarex DCB platform, which is designed to treat peripheral arterial disease, is expected to receive European CE mark approval in late 2014 or early 2015. Spectranetics anticipates a European launch of the product immediately after CE mark approval, with United States commercialization in the 2017 timeframe, following FDA approval, according to a press release from Covidien.
“This acquisition advances [Spectranetics’] objective to provide comprehensive solutions to cross, prepare and treat the most complex vascular conditions,” Scott Drake, president and CEO, Spectranetics, said in a statement.
“Drug-coated balloons are and will be an integral part of the vascular landscape for many years to come. We believe this technology will meaningfully add to our near-term revenue growth and expand operating leverage over time,” he said.
Brian Verrier, president, peripheral vascular, Covidien, said, “The Stellarex team has made significant progress developing this advanced technology and we are confident that Spectranetics is the right organization to advance the program. Pending completion of the Medtronic transaction, Covidien looks forward to collaborating with Spectranetics to transfer this technology.”
Spectranetics management expects that this acquisition will provide revenue growth beginning in 2015, and has potential to add at least $100 million of revenue within two to three years of commercialization in the United States.
The company said that the investment required to capitalize on this opportunity will lead to estimated dilution to 2015 earnings per share in the range of $28 million to $32 million, or 65 cents to 75 cents per share, driven primarily by research and development costs associated with the ongoing Stellarex clinical trial program.
Colorado-based Spectranetics develops, manufactures, markets and distributes single-use medical devices used in minimally invasive procedures within the cardiovascular system. Covidien, a medical device company headquartered in Ireland, has its main offices in Mansfield, Mass.

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