Healthcare Industry News: thrombectomy
News Release - May 13, 2008
Spectranetics Acquires Endovascular Business of Kensey Nash
COLORADO SPRINGS, Colo.--(HSMN NewsFeed)--Spectranetics Corporation (Nasdaq:SPNC ) today announced it has entered into a definitive agreement to acquire the endovascular business of Kensey Nash Corporation (Nasdaq:KNSY ) for upfront consideration of $10 million with additional payments up to an aggregate of $14 million, subject to achievement of certain sales, product development and FDA approval objectives. The transaction is subject to customary closing conditions and is expected to close by June 30, 2008.The commercialized products acquired consist of the QuickCat® thrombus aspiration catheter, ThromCat® thrombectomy device, and SafeCross® products used to treat chronic total occlusions (CTO). These products generated sales of $5.1 million during the year ended December 31, 2007. Kensey Nash will continue to manufacture the ThromCat and SafeCross products for an initial term of three years, which may be extended. Spectranetics expects to assume manufacturing responsibilities for the QuickCat product after a six month transition period. Additionally, after manufacturing of the ThromCat and SafeCross products is transferred to the Company, the Company will be obligated to pay Kensey Nash a share of revenues received from sales of such products. After manufacturing of the QuickCat product has transferred to the Company, there will be no obligation to make additional payments to Kensey Nash related to future sales of the QuickCat product. Spectranetics and Kensey Nash will work together to continue to develop improvements to these products and initial efforts will be targeted at the next generation ThromCat and SafeCross products.
John G. Schulte, Spectranetics’ President and Chief Executive Officer, stated, “The acquisition of the endovascular business of Kensey Nash will both strengthen and broaden our existing presence in the treatment of thrombus and chronic total occlusions. The QuickCat aspiration catheter and the ThromCat mechanical thrombectomy catheter provide a continuum of options for treating thrombus and certainly complement laser ablation for complex disease. The SafeCross wire, which utilizes radiofrequency energy, fits nicely with our QuickCross® catheters for crossing total occlusions when standard guidewires fail. Adding these products to our recently specialized vascular intervention sales organization will leverage our presence with the same physician customers already served prior to this transaction. Throughout our due diligence, we were impressed with the capabilities of the existing Kensey Nash endovascular products and are truly excited about the next generation devices under development. We believe our distribution capabilities combined with the product development expertise of Kensey Nash represent a compelling opportunity to expand the use of these products.”
Joseph W. Kaufmann, President of CEO of Kensey Nash, commented, “Spectranetics is well respected as a market leader in treating arterial blockages with its unique laser atherectomy platform. The addition of our thrombectomy and CTO products to Spectranetics’ business will create a market leading entity that combines Spectranetics’ well-established sales and marketing organization in the thrombus management and CTO markets with Kensey Nash’s product development and manufacturing capabilities.”
The Company does not expect this transaction to impact existing 2008 revenue and pre-tax income guidance, excluding any charges that may be associated with the transaction, such as in-process research and development. As such, the Company is not updating 2008 financial guidance at this time.
Conference Call
Management will host an investment-community conference call on Tuesday, May 13, 2008, beginning at 11:30 a.m. Mountain time, 1:30 p.m. Eastern time, to discuss this product line acquisition. Individuals interested in listening to the conference call should dial (888) 803-8271 for domestic callers, or (706) 634-2467 for international callers. The live conference call will also be available via the Internet on the investor relations section of www.spectranetics.com.
A telephone replay will be available for 48 hours following the conclusion of the call by dialing (800) 642-1687 for domestic callers, or (706) 645-9291 for international callers and entering reservation code 47528786. The web site replay will be available for 14 days following the completion of the call.
About Spectranetics
Founded in 1984, Spectranetics manufactures and sells the only excimer laser approved in the United States, Europe and Japan for use in minimally invasive cardiovascular procedures. This technology treats complex cardiovascular conditions by photo-ablating multiple lesion types into tiny particles that are easily absorbed into the blood stream. The Company’s disposable catheters use high-energy “cool” ultraviolet light to vaporize arterial blockages in the legs and heart, as well as scar tissue encapsulating pacing and defibrillation leads. For more information visit www.spectranetics.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties may include market acceptance of excimer laser atherectomy technology, increasing price and product competition, increased pressure on expense levels resulting from expanded sales, marketing, product development and clinical activities (including with regard to the products to be acquired from Kensey Nash), uncertain success of the Company's strategic direction, dependence on new product development, intellectual property claims of third parties, availability of inventory from suppliers, the receipt of FDA approval to market new products or applications and the timeliness of any approvals (including with regard to the products to be acquired from Kensey Nash), market acceptance of new products or applications, product defects, ability to manufacture sufficient volumes to fulfill customer demand, availability of vendor-sourced components at reasonable prices, the integration of the products to be acquired from Kensey Nash into the Company’s distribution and sales operations, unexpected delays or costs associated with the Company’s relocation and consolidation of its headquarters and manufacturing operations, and price volatility due to the initiation or cessation of coverage, or changes in ratings, by securities analysts. For a further list and description of such risks and uncertainties that could cause the actual results, performance or achievements of the Company to be materially different from any anticipated results, performance or achievements, please see the Company's previously filed SEC reports. Spectranetics disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Spectranetics
Issuer of this News Release is solely responsible for its
content.
Please address inquiries directly to the issuing company.
