PRORHYTHM ANNOUNCES $25 MILLION INVESTMENT BY ST. JUDE
ProRhythm, a developer and manufacturer of medical devices for the treatment of atrial fibrillation (AF), has entered into a number of agreements with St. Jude Medical.
These agreements provide that, under certain conditions, St. Jude will make two $12.5 million minority investments in ProRhythm, which the company anticipates will occur during 2005. These agreements also provide that St. Jude has the exclusive right to acquire ProRhythm for $125 million in cash with additional cash payments payable to the ProRhythm shareholders after the completion of an acquisition if ProRhythm achieves certain performance-related milestones.
St. Jude is not obligated to exercise this acquisition right, which extends to March 31, 2007. The two companies have also agreed to collaborate on the continuing development of ProRhythm's catheter-based High Intensity Focused Ultrasound Ablation System for the treatment of AF.