St Jude Medical has announced that it has signed a definitive agreement to acquire privately held NeuroTherm, a manufacturer of interventional pain management therapies, for approximately US$200 million in cash.
NeuroTherm is a global leader in the treatment of spinal pain using radiofrequency ablation (RFA), a segment of the chronic pain market in which St Jude Medical does not currently participate. The company expects to complete this transaction by the end of the third quarter, subject to customary closing conditions. NeuroTherm is expected to add approximately US$10 million to US$15 million to St Jude Medical’s 2014 sales. Excluding acquisition-related expenses, this transaction will be neutral to St Jude Medical’s consolidated earnings per share in 2014 and accretive thereafter on a GAAP basis.
“NeuroTherm’s radiofrequency ablation products are an ideal complement to St Jude Medical’s chronic pain portfolio, providing our global sales force with additional interventional pain therapies that offer potential relief to patients earlier in the chronic pain continuum,” says Michael T Rousseau, chief operating officer of St Jude Medical. “As the only medical device manufacturer with both RFA and spinal cord stimulation, this acquisition will enable us to offer more treatment options to patients worldwide who suffer from the debilitating effects of chronic pain.”
NeuroTherm’s flagship technology is a multi-lesion radiofrequency generator that allows real-time temperature monitoring and enables continuous delivery of energy to each site designed to ensure complete treatment of each targeted spinal nerve. The company’s products are available in over 65 countries.
Christopher R von Jako, president and chief executive officer of NeuroTherm says, “St Jude Medical’s global leadership in chronic pain represents an excellent opportunity to bring NeuroTherm’s radiofrequency ablation technologies to more pain specialists and patients. We are proud of the business that NeuroTherm has built and thank our employees and shareholders for their commitment to developing innovative interventional pain management therapies. We see a promising future with St Jude Medical that combines our products with a leading pain franchise and further develops the underpenetrated global market for chronic pain.”
