Date: 2014-11-02
Type of information: Product acquisition
Compound: Stellarex™ drug coated angioplasty balloon (DCB) platform
Company: Covidien (Ireland) Spectranetics (USA - CO)
Therapeutic area: Cardiovascular diseases
Type agreement: product acquisition
Action mechanism:
Disease: peripheral arterial disease
Details: * On November 2, 2014, The Spectranetics Corporation and Covidien announced a definitive agreement under which Spectranetics will acquire Covidien\'s Stellarex™ drug coated angioplasty balloon (DCB) platform for $30 million. The transaction is subject to approval by the Federal Trade Commission and other regulatory agencies, as well as closure of the pending acquisition of Covidien by Medtronic, which is expected to occur in early 2015. It is anticipated that the Stellarex DCB platform will receive European CE mark approval in late 2014 or early 2015. Spectranetics expects a European launch of the product immediately upon CE mark approval, with U.S. commercialization in the 2017 timeframe, following FDA approval. Spectranetics management expects the acquisition of the Stellarex platform will provide a revenue growth catalyst beginning in 2015, and has the potential to contribute at least $100 million of revenue within two to three years of commercialization in the United States. The investment required to capitalize on this opportunity will lead to estimated dilution to 2015 earnings per share in the range of $28.0 million to $32.0 million, or $0.65 to $0.75 per share driven primarily by research and development costs associated with the ongoing Stellarex clinical trial program. The Company anticipates the transaction to be accretive to adjusted operating income, excluding special items, in the first full year following U.S. commercialization.
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