Terumo Corporation has announced that it has entered into an agreement to purchase Sequent Medical, known for its WEB aneurysm embolization device.
The purchase price of US$280 million will be paid at closing, with up to US$100 million more to be paid based on the achievement of specific development or commercial milestones.
According to a company release, the acquisition is a key element in Terumo’s new growth strategy to establish and expand its global presence in the neurovascular market and other rapidly growing markets. Terumo has also identified the cardiology and endovascular markets as potential areas for growth.
Terumo says that Sequent provides the company with the opportunity to bring an important new device to the US market and improve its presence in the neurovascular device market, which is expected to grow significantly.
The global neurovascular device market is growing steadily and is expected to reach 300 billion yen in 2018. New aneurysm embolisation devices are expected to be substantial growth drivers within the overall market.
Terumo entered the neurovascular device market in 2006 by acquiring MicroVention. Since that time, the company developed a diversified product portfolio covering most product segments in the global neurovascular market, including embolization coils used to treat aneurysms, and related interventional devices and stents.
Sequent develops, manufactures, and sells a unique device that is the world leader and first commercial device in this important new category of aneurysm embolization systems, referred to as intrasaccular flow disrupters. In 2010, Sequent obtained CE mark to commercially sell the WEB System in all major markets in Europe. Sequent also recently completed patient enrolment in the WEB-IT Investigational Device Exemption (IDE) pivotal trial. Data from the trial will be used by the FDA to evaluate the safety and effectiveness of the WEB System. Terumo and MicroVention will work with the FDA toward the goal of gaining approval to market and sell the device in the USA. Terumo management believes its currently fast-growing neurovascular business will be further enhanced by the addition of Sequent’s aneurysm embolisation device.
The WEB System is based on Sequent’s proprietary MicroBraid technology, a dense mesh constructed from a large number of extremely fine wires. Unlike conventional medical braids, MicroBraid allows for a mix of wire diameters or materials to achieve a tailored balance of compliance, porosity and profile across device sizes. The WEB System enables physicians to treat wide-neck bifurcation aneurysms with the familiarity of an intrasaccular approach while using established biomaterials.
The WEB system is commercially available and has already been used to treat more than 3,000 patients worldwide. The WEB System is not yet available for sale or distribution in the United States.
The WEB Aneurysm Embolization System is intended for the endovascular embolization of ruptured and unruptured intracranial aneurysms and other neurovascular abnormalities such as arteriovenous fistulae (AVF).
Pending regulatory approval, Terumo expects to complete the acquisition in July or August 2016. The effects of the acquisition on Terumo’s business performance and financial state are currently under review and will be announced when completed.