Healthcare Industry News: Terumo
News Release - February 28, 2006
Terumo Announces Acquisition of MicroVentionAcquisition to Facilitate Terumo's Entry into the High Growth Market of Catheter-Based Technologies for the Treatment of Cerebral Vascular Disease
TOKYO--(HSMN NewsFeed)--Feb. 28, 2006--Terumo Corporation (TOKYO:4543 ; Shibuya-ku, Tokyo Japan; CEO Takashi Wachi), a leading provider of general hospital, cardiac and vascular, and home healthcare products, today announced that it has entered into a definitive agreement to acquire MicroVention Inc. (California, USA), a privately held medical device company focused on endovascular coils and related products for the treatment of cerebral aneurysms. A majority of MicroVention's shareholders have agreed to vote in favor of the transaction and it is expected to close by March 31, 2006 subject to the required regulatory clearance.
Founded in 1997 and headquartered in Aliso Viejo, California, MicroVention develops and commercializes novel and proprietary hydrogel-coated and bare platinum coils and related devices for the minimally invasive, endovascular treatment of cerebral vascular aneurysms. MicroVention's HydroCoil® Embolic System and MicroPlex(TM) coil system are based on best of breed technology and have proved to be highly effective for the treatment of cerebral aneurysms. In addition, MicroVention recently launched its V-Trak detachment system, a device used to smoothly detach coils from the delivery device in the brain. MicroVention markets and sells its products worldwide through its direct sales force and distributor network.
The worldwide market for the endovascular treatment of cerebral aneurysms, currently estimated at over $200M for endovascular coils, is expected to show a double-digit growth over the next several years. Historically, cerebral aneurysms were treated via a surgical clipping procedure which required a craniotomy. These procedures carry a significant risk and require lengthy patient recovery periods. In an endovascular coiling procedure, vascular access is gained by the femoral artery, through which guidewires and catheters are placed and fed to the site of the cerebral aneurysm. Endovascular treatment of cerebral aneurysms is substantially less invasive than surgical clipping with improved patient outcomes.
"As Terumo continues to expand its cardiac and vascular businesses, we believe that the acquisition of MicroVention provides a great strategic opportunity for Terumo to further strengthen our intervention business by entering the high growth area of endovascular coiling," said Takashi Wachi, Terumo's Chief Executive Officer. "The experience and capabilities Terumo expects to gain from this transaction can significantly contribute to Terumo's sustained success in this key market segment."
"This is a tremendous opportunity for MicroVention to be a part of a much larger and very highly respected international organization and to accelerate MicroVention's growth through a broader platform for bringing novel interventional products to the market," said R. Michael Kleine, President of MicroVention. "This is a great day for MicroVention and everyone who is part of our business family, and we are pleased to be joining a company that shares our vision, passion and competitive spirit."
About Terumo Corporation
Terumo Corporation, headquartered in Shibuya-ku, Japan, (www.terumo.com) is a leading manufacturer of single-use medical devices, such as syringes, blood bags and IV solutions. Terumo has the biggest share of the world markets for angiography guide wires and perfusion products and is a leading developer of interventional products, such as catheters and stents.
About MicroVention, Inc.
MicroVention, Inc., in California, USA, (www.microvention.com) is a privately held medical device company dedicated to the development and commercialization of new catheter-based technologies for the endovascular treatment of cerebral and peripheral vascular diseases. The company has received 510(k) clearance and CE Mark for both its MicroPlex Coil System and the HydroCoil Embolization System to treat cerebral aneurysms. MicroVention sells its products through its direct sales force in the U.S., Canada, France, Germany and the United Kingdom and through distributors in other countries.
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