Royal Philips and The Spectranetics Corporation announced that they have entered into a definitive merger agreement. Pursuant to the agreement, Philips will commence a tender offer to acquire all of the issued and outstanding shares of Spectranetics for US$38.50 per share, to be paid in cash upon completion.
Philips also acquired CardioProlific, a USA-based, privately-held company that is developing catheter-based thrombectomy approaches to treat peripheral vascular disease.
Philips has a leadership position in the €6+ billion image-guided therapy market with a unique portfolio of interventional imaging systems and devices, planning and navigation software, and services, serving a large, global customer base and supported by a global network of leading clinical partners, a press release states.
The acquisition of Spectranetics will further expand and strengthen Philips’ Image-Guided Therapy Business Group. Spectranetics is a leader in vascular intervention to treat coronary and peripheral artery disease, and in lead management for the minimally invasive removal of implanted pacemaker and implantable cardioverter defibrillator (ICD) leads. Spectranetics is currently growing double digits and projects 2017 sales to be in the range of US$293 million to US$306 million.
Spectranetics’ device portfolio includes a range of laser atherectomy catheters for treatment of blockages with laser energy in both coronary and peripheral arteries; the AngioSculpt scoring balloon used to mechanically push a blockage aside in both peripheral and coronary arteries; the AngioSculptX scoring balloon, which is the only drug-coated scoring balloon in the market, and the Stellarex drug-coated balloon, which treats common to complex lesions while inhibiting the recurrence of these blockages. All of these market segments exhibit high growth rates.
The Stellarex drug-coated balloon is a key growth driver in Spectranetics’ portfolio. Stellarex already is CE-marked, and under review by the USFDA for premarket approval in the USA. The drug-coated balloon segment is one of the fastest growing segments in peripheral vascular procedures. Top-tier outcomes in the most complex patient population studied in drug-coated balloon investigational device exemption trials indicate that Spectranetics’ Stellarex has excellent clinical performance with proven results in complex disease.
“Today’s exciting announcement follows a series of bolt-on acquisitions to strengthen our portfolio across the health continuum,” said Frans van Houten, CEO of Royal Philips. “Building on the successful integration of the Volcano acquisition in early 2015, we are now accelerating our strategic expansion into therapy devices with the agreement to acquire Spectranetics. This transaction is expected to be revenue growth and profit accretive by 2018, given the projected revenue and productivity synergies. Spectranetics’ highly competitive product range, integrated with our portfolio of interventional imaging systems, devices, software and services will enable clinicians to decide, guide, treat and confirm the appropriate cardiac and peripheral vascular treatment to deliver enhanced care for patients with better outcomes, as well as significantly boost recurring revenue streams for Philips.”
A company press release states that CardioProlific’s technologies are complementary to Philips’ portfolio of image-guided therapy devices and to the portfolio of The Spectranetrics Corporation. The acquisition of CardioProlific underpins Philips’ aim “to develop new solutions for clinicians to decide, guide, treat and confirm the appropriate therapy for cardiac and peripheral vascular disease”.
“The acquisition of CardioProlific will further strengthen our innovation pipeline of catheter-based therapy devices,” said Bert van Meurs, Business Leader Image Guided Therapy at Philips. “We are convinced that the development of CardioProlific’s differentiated thrombectomy technologies, combined with our suite of image-guided therapy solutions, will help our customers drive the procedure innovation for the treatment of peripheral vascular disease.”
Philips’ image-guided therapy portfolio comprises interventional imaging systems, planning and navigation software, interventional devices—including catheters for diagnosis and therapy—and a broad range of services, all aimed at helping clinicians to deliver more efficient and effective care to improve the lives of the patients they treat.