The Spectranetics corporation and Covidien have announced a definitive agreement under which Spectranetics will acquire Covidien’s Stellarex drug-coated angioplasty balloon platform for US$30m.
The transaction is subject to approval by the Federal Trade Commission and other regulatory agencies, as well as closure of the pending acquisition of Covidien by Medtronic, which is expected to occur in early 2015.
It is anticipated that the Stellarex drug-coated balloon platform will receive European CE mark approval in late 2014 or early 2015.Spectranetics expects a European launch of the product immediately upon CE mark approval, with US commercialisation in the 2017 timeframe, following FDA approval.
“Drug coated balloons are and will be an integral part of the vascular landscape for many years to come. Global thought leaders believe that primary patency is the most important clinical metric, and Stellarex’s feasibility data stands apart. We believe this technology will meaningfully add to our near-term revenue growth and expand operating leverage over time,” says Scott Drake, president and chief executive officer of Spectranetics.
“The Stellarex team has made significant progress developing this advanced technology and we are confident that Spectranetics is the right organisation to advance the program,” comments Brian Verrier, president, Peripheral Vascular, Covidien. “Pending completion of the Medtronic transaction, Covidien looks forward to collaborating with Spectranetics to transfer this technology as well as ensure investigators of the ILLUMENATE trial series are transitioned appropriately.”
Spectranetics management expects the acquisition of the Stellarex platform will provide a revenue growth catalyst beginning in 2015, and has the potential to contribute at least US$100 million of revenue within two to three years of commercialisation in the USA.