Date: 2012-12-26
Type of information: Company acquisition
Acquired company: CV Ingenuity (USA)
Acquiring company: Covidien (Ireland)
Amount: undisclosed
Terms: Covidien, a leading global provider of healthcare products, has announced a definitive agreement to acquire CV Ingenuity. The companies expect to complete the acquisition in the first calendar quarter of 2013. As a result of this transaction, Covidien expects to increase research and development expenditures for the next several years to fund the clinical development of CV Ingenuity technologies. Additional expenditures are expected to be more than $20 million in the second half of fiscal 2013 and more than $30 million in fiscal 2014. Despite these additional expenditures and the negative impact on selling, general and administrative expenses from the transaction, Covidien is reaffirming all of its prior guidance ranges, which were last updated on November 9, 2012. Also, Covidien does not anticipate receiving FDAA approval for a DCB product using the CV Ingenuity technology until fiscal 2017.
* On January 10, 2013, Covidien announced that it has completed the acquisition of CV Ingenuity.
Covidien will report the CV Ingenuity business as part of its Vascular product line in the Medical Devices segment.
Details: CV Ingenuity, a privately-held company based in Fremont, CA, is focused on improving patient outcomes in the treatment of peripheral arterial disease (PAD) by providing solutions to relieve vascular obstructions, inhibit restenosis, and allow natural vessel healing. The company's core technology, while still in the investigational phase, is a Drug Coated Balloon (DCB) platform with a novel, proprietary, tunable, rapid-release system.
Related: Medical devices
