Healthcare Industry News: peripheral artery disease
News Release - October 4, 2007
ev3 and FoxHollow Technologies Announce Completion of MergerPLYMOUTH, Minn. & REDWOOD CITY, Calif.--(HSMN NewsFeed)--ev3 Inc. (NASDAQ:EVVV ) and FoxHollow Technologies, Inc. (NASDAQ:FOXH ) announced today the successful completion of their previously announced merger under which ev3 has now acquired all the outstanding shares of FoxHollow common stock, resulting in FoxHollow becoming a wholly owned subsidiary of ev3.
ev3 and FoxHollow have combined to create an organization that possesses one of the largest U.S. distribution footprints in endovascular devices with one of the broadest and most technologically advanced product offerings. The company's combined product portfolio will include a broad spectrum of products to treat vascular disease in both the peripheral and neurovascular markets, including atherectomy and thrombectomy, PTA balloons, stents, embolic protection devices, infusion catheters/wires, embolic coils and liquid embolics.
Jim Corbett, Chairman of the Board and Chief Executive Officer of ev3 commented, "We are extremely pleased with the outcome of today's vote of the FoxHollow stockholders and the timely completion of the transaction. This merger brings together two industry leaders who share a deep commitment to advancing the treatment of peripheral and neurovascular disease, creating a single, best-in-class technology resource for specialists who treat endovascular disease. Further, the combination has produced a much more financially powerful company, as we expect to generate significant annual cost savings from enhanced efficiency of sales and marketing efforts, increased purchasing scale, sourcing and logistics efficiencies and shared administrative services. In addition to enhancing profitability, this will allow for more opportunities for growth through internal and external development programs. I want to thank our stockholders, customers and dedicated employees for their support throughout this process and look forward to a smooth integration."
Dr. John Simpson, the founder and former Chief Executive Officer of FoxHollow, and the Vice Chairman of the Board and Chief Scientist of ev3, said, "We are thrilled to be taking FoxHollow's fight against peripheral vascular disease to the global stage. Once integration activities are completed, the combined company will have direct operations or independent distributor presence in over 60 countries with more than 1,500 employees. ev3's strong international presence and sales infrastructure will be utilized to increase penetration of the SilverHawk(TM) technology outside the United States. Our total commitment is to advance the treatment of this epidemic disease, and we look forward to making the scientific and technological contributions needed to move patient treatment forward."
The combined company's ownership composition consists of approximately 41 percent from FoxHollow stockholders and 59 percent from ev3 stockholders. ev3's stockholders had previously approved the issuance of shares in connection with the transaction by a written consent action and FoxHollow's stockholders approved the merger at a special meeting held today. Effective at the close of business today, trading in FoxHollow common stock will be discontinued.
In addition to Dr. Simpson, who will serve as the Vice Chairman of the Board, ev3 will add three other former directors of FoxHollow to the ev3 Board - Jeffrey B. Child, Richard N. Kender and Myrtle S. Potter.
About ev3 Inc.
ev3 Inc. is a global medical device company focused on endovascular technologies for the minimally invasive treatment of vascular diseases and disorders.
ev3 and the ev3 logo are trademarks of ev3 Inc., registered in the U.S. and other countries.
All trademarks and trade names referred to in this press release are the property of their respective owners.
About FoxHollow Technologies
FoxHollow Technologies, Inc. develops and markets minimally invasive devices for the removal of plaque and thrombus for the treatment of peripheral artery disease (PAD). PAD results from plaque that accumulates in the arteries and blocks blood flow in the legs. These blockages can result in severe pain for patients and very limited physical mobility. The company's SilverHawk Plaque Excision System is a minimally invasive method of removing the obstructive plaque and restoring blood flow to the legs and feet. The company's Rinspirator thrombectomy system removes thrombus, or blood clots, from occluded arteries in patients suffering from PAD or coronary artery disease.
This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving ev3 and FoxHollow, the integration of the two businesses, potential synergies and cost savings, future financial and operating results, ev3's plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "should," "may," or words of similar meaning and any other statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of ev3's management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond the control of ev3. Actual results may differ materially from the results anticipated in these forward-looking statements.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statement: general business and economic conditions; the competitive environment; the failure to realize synergies and cost-savings from the transaction or delay in realization thereof; the businesses of ev3 and FoxHollow may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; and operating costs and business disruption following the merger, including adverse effects on employee retention and on ev3's and FoxHollow's business relationships with third parties, including hospitals, physicians and distributors. Additional factors that could cause ev3's results to differ materially from those described in the forward-looking statements can be found in the registration statement on Form S-4 that ev3 filed on August 17, 2007 (and all amendments and supplements thereto), ev3's and FoxHollow's Annual Reports on Form 10-K for the year ended December 31, 2006, and ev3's Quarterly Reports on Form 10-Q for the quarters ended April 1, 2007 and July 1, 2007 and FoxHollow's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2007 and June 30, 2007, which were filed by ev3 with the Securities and Exchange Commission and are available at the SEC's web site at www.sec.gov. The information set forth herein speaks only as of the date hereof, and ev3 and FoxHollow disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.
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