Volcano Shells Out $115 Million for AtheroMed
San Diego-based imaging technology company Volcano said Monday it has signed an agreement to acquire privately held AtheroMed and its Phoenix atherectomy catheter system for $115 million in cash.
Under the deal, which is expected to close this quarter, Volcano will make an additional $15 million milestone payment and potential revenue-based payments if a Phoenix device currently under FDA review receives 510(k) clearance by November 15.
The move is part of Volcano’s strategy to offer a diversified portfolio of therapeutic devices, the company said.
The Phoenix atherectomy catheter system joins two other recently acquired devices, the Pioneer Re-Entry catheter and the Crux vena cava filter, which were purchased from Medtronic and Crux Biomedical, respectively.
The atherectomy system helps physicians restore blood flow to the ankle and foot using a catheter-based rotating tool that "shaves" material directly into the catheter for disposal. The device received 510(k) clearance in January, as well as a CE mark. It is subject to reimbursement in the U.S. and select European countries, Volcano said.
Volcano is planning a limited market launch by the end of the year and full market release in early 2015. Manufacturing will begin at AtheroMed's Menlo Park, Calif., facility before moving to Volcano's Costa Rica facility late next year. — Kellen Owings
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