On 21 November, Covidien announced a definitive agreement to acquire Barrx Medical, leader in the treatment of Barrett’s esophagus syndrome using bipolar radiofrequency (RF) ablation devices.
Covidien will acquire all of the outstanding capital stock of Barrx, a private company, for approximately US$325 million, with future earn out payments possible based on achievement of specific milestones. The transaction, subject to customary closing conditions, including receipt of certain regulatory approvals, is expected to be completed by 31 January 2012.
Barrett’s esophagus syndrome is a precancerous condition of the lining of the esophagus, often a precursor to esophageal cancer and often the result of gastro esophageal reflux disease. Left untreated, Barrett’s can lead to esophageal adenocarcinoma, a cancer with less than 15% five-year survival. Barrx’s Halo90, Halo90 Ultra and Halo360+ ablation catheters, driven by the Haloflex ablation system, provide a uniform and controlled ablation effect that removes diseased tissue and allows re-growth of normal cells.
“Barrx Medical products and technology complement our current portfolio of energy-based products and will broaden our presence in the global gastrointestinal market,” said Bryan Hanson, group president, Surgical Solutions. ”At the same time, patients will benefit from advances in RF technologies that will change the standard of care for esophageal diseases from invasive surgery to therapeutic intervention. Covidien offers advantages to Barrx Medical that support its mission in long-term growth and value to patients. We expect to leverage Barrx technology and capabilities as a platform to accelerate global expansion.”
“We are extremely pleased that Covidien has elected to acquire Barrx, as this should allow us to accelerate the worldwide adoption of our evidence-based endoscopic therapy for patients with Barrett’s esophagus,” said Greg Barrett, president and CEO, Barrx Medical. “Dozens of clinical trials and over 65 peer-reviewed publications have demonstrated the safety and effectiveness of our devices for treating esophageal disease, and over 90,000 procedures have been performed. We look forward to this acquisition to enable the clinical trial evaluation of the Halo system in other portions of the gastrointestinal tract as well.”