Healthcare Industry News: endovascular coils
News Release - February 28, 2006
MicroVention to Be Acquired by Terumo CorporationInnovative Cerebral Aneurysm Company to Merge With International Medical Products Leader
ALISO VIEJO, Calif., Feb. 28 (HSMN NewsFeed) -- MicroVention, Inc., a leading developer, manufacturer and marketer of minimally invasive treatments for cerebral and vascular peripheral diseases, announced today that it has entered into a definitive agreement to be acquired by Tokyo-based Terumo Corporation, an international manufacturer and provider of general hospital, cardiac, vascular and home healthcare products. The all-cash acquisition of privately-held MicroVention is expected to close by March 31, 2006, subject to the receipt of required approvals. MicroVention and its employees and management will continue to operate out of the Company's headquarters in Aliso Viejo. Further terms were not disclosed.
"This is a tremendous opportunity for MicroVention to be part of a much larger and highly respected international organization and to accelerate the Company's growth through a broader platform for bringing novel interventional products to the market," said MicroVention President and CEO, R. Michael Kleine. "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.
"The acquisition of MicroVention will enable Terumo to immediately expand into the growing worldwide market for the endovascular treatment of cerebral aneurysms. The current endovascular coiling market is estimated to be $225 million and expected to show double-digit growth over the next several years," said Kleine. MicroVention, which has a global sales force and distribution network, 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 products are rapidly becoming the standard of care for endovascular treatment of cerebral aneurysms," said MicroVention co-founders Bob Rosenbluth, Brian Cox and Rob Greene in a joint statement. "Combining our proprietary expansile hydrogel coil technology with the resources and global strength of Terumo creates an outstanding partnership to become the market share leader in the endovascular coiling market."
"MicroVention has established a global reputation for leadership, innovation, research, development and customer service that we believe allows us to make a significant impact in the cerebral aneurysm and endovascular coiling markets which are growing at a rapid rate," said Terumo Chairman and Chief Executive Officer, Takashi Wachi. "We value the experience and capabilities of MicroVention's employees, as well as the relationships they have created with their international customer base, and we intend to support and provide growth opportunities and additional resources to ensure the continuation of the MicroVention tradition that is already in place."
Mr. Wachi added that MicroVention President, Michael Kleine, together with the existing management team, and all MicroVention employees will remain in place and in their current roles. The acquisition will proceed with as little impact and disruption as possible in the daily activities of MicroVention's employees and customers.
Terumo is a leading manufacturer of single-use medical devices, such as syringes, blood bags and IV solutions. Terumo is the global leader in the market for angiography guide wires and perfusion products and also a leading developer of interventional products, such as catheters and stents.
MicroVention's HydroCoil® Embolic System and MicroPlex(TM) coil system are based on advanced technology and have proven to be highly-effective for the treatment of cerebral aneurysms, which are the ballooning of weakened regions of a blood vessel that, left untreated, can rupture and bleed into the brain. MicroVention recently launched its V-Trak delivery system, a device used to easily detach coils within an aneurysm.
Banc of America Securities LLC acted as exclusive financial advisor to MicroVention in connection with the transaction and Stradling Yocca Carlson & Rauth acted as legal counsel.
About MicroVention, Inc.
MicroVention, Inc. (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.
About Terumo Corporation
Terumo Corporation (www.terumo.co.jp), headquartered in Shibuya-ku, Japan, is a leading manufacturer of single-use medical devices, such as syringes, blood bags and IV solutions. Terumo has the largest 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. The company was founded in 1921 and its products are distributed in more than 150 countries world wide.
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