Thursday, June 16, 2016
Japanese medical device company Terumo Corp. has agreed to buy Sequent Medical Inc., a developer of a device used for aneurysm embolization, for $280 million.
Aliso Viejo-based Sequent Medical said the $280 million purchase price will be paid at closing, with up to $100 million more to be paid based on the achievement of specific development or commercial milestones.
The transaction is expected to be completed in July or August, pending regulatory approval.
Terumo said the acquisition is a key element in its plans to establish and expand its global presence in the neurovascular market and other rapidly growing markets. It said Sequent provides Terumo the opportunity to bring an important new device to the U.S. market and improve its presence in the neurovascular device market, which is expected to grow significantly.
Terumo entered the neurovascular device market in 2006 by acquiring MicroVention Inc. (California, United States). 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.
Founded in 2007, Sequent invented and developed its Microbraid technology, a dense mesh constructed from a large number of extremely fine wires, to create the WEB aneurysm embolization system for the treatment of both ruptured and unruptured aneurysms. The company says the system is the first commercial device in the new category of aneurysm embolization systems, referred to as intrasaccular flow disrupters.
In 2010, Sequent obtained CE mark to commercially sell its WEB system in Europe and recently completed patient enrollment in a pivotal trial. Data from the trial will be used by the FDA to evaluate the safety and effectiveness of the WEB system. The WEB system has already been used to treat more than 3,000 patients worldwide but is not yet available for sale or distribution in the United States.
Source : bizjournals.com
