Abbott to acquire cardiac valve device company Evalve
21 September 2009
Abbott (NYSE:ABT) has announced a definitive agreement to acquire the
outstanding equity of Evalve, Inc., a developer of devices for minimally
invasive repair of cardiac mitral valves.
The acquisition provides Abbott with a presence in the growing area
of non-surgical treatment for structural heart disease, in which
physicians use catheter-based devices to repair or replace basic
structural components of the heart such as mitral and aortic valves. The
agreement includes an upfront payment of $320 million in cash, plus an
additional payment upon completion of certain regulatory milestones, for
a total of up to $410 million.
"The acquisition of Evalve will provide Abbott with leading
technology in the emerging field of minimally invasive heart valve
repair and further broadens Abbott's medical devices portfolio," said
John M. Capek, PhD, executive vice president, Medical Devices, Abbott.
"Evalve is on the cutting edge with its non-surgical approach to
treating structural heart disease. With this breakthrough mitral valve
repair technology, physicians will be able to offer their patients a
minimally invasive alternative to open heart surgery — not unlike the
opportunity that stents provided more than two decades ago for the
treatment of coronary artery disease."
Mitral regurgitation, a condition that prevents the mitral valve from
closing completely, is the most common type of heart valve insufficiency
in Europe and the United States, and affects millions of people
worldwide. Traditionally, mitral regurgitation is treated through open
heart surgery. However, only about 20% percent of the 600,000 patients
diagnosed in the US and Europe each year undergo surgery.
Evalve's minimally invasive catheter-based MitraClip system, used to
clip the leaflets of the mitral valve together to reduce regurgitation,
is the first commercially available treatment option approved in Europe
for non-surgical mitral valve repair for patients suffering from the
effects of mitral regurgitation. The MitraClip system is an
investigational device in the United States and is currently in clinical
"Combining Evalve's first in class mitral valve repair technology
with Abbott's global presence, commercial infrastructure and
manufacturing expertise will help advance minimally invasive treatment
options for the millions of patients with mitral regurgitation," said
Robert Hance, senior vice president, vascular, Abbott. "We look forward
to welcoming Evalve as a key part of Abbott's vascular business."
"Patients in Europe have benefited from having access to the
MitraClip technology since it received CE Mark last year," said Ferolyn
Powell, president and chief executive officer of Evalve, who will
continue to lead the Evalve team and will report to Hance after the
acquisition closes. "We look forward to becoming a part of Abbott and
working together to accelerate our business and expand our global reach
to patients around the world with our minimally invasive technologies."
Under the terms of the agreement, Abbott will acquire the remaining
90 percent of outstanding equity of Evalve, Inc. that it does not
already own for an upfront payment of $320 million, plus a $90 million
payment if certain regulatory milestones are met. The transaction does
not impact Abbott's previously issued earnings-per-share guidance for
The transaction is subject to customary closing conditions, including
antitrust clearances. Abbott says it expects the transaction to close in
the fourth quarter of 2009.
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