Over 90 Total Lots Up For Auction at One Location - WA 04/08

St. Jude acquires Thoratec for $3.4 billion

by Lauren Dubinsky, Senior Reporter | July 23, 2015
Business Affairs Cardiology Medical Devices
St. Jude Medical announced yesterday that it has agreed to acquire the heart failure device company, Thoratec, for about $3.4 billion. According to St. Jude, the combination of the companies will create the most comprehensive portfolio of products for the management and treatment of heart failure.

St. Jude’s will be adding Thoratec’s ventricular assist devices (VAD), HeartMate II and HeartMate 3 and its percutaneous heart pump, HeartMate PHP, to its portfolio. The new products will allow St. Jude to enter global markets that are worth over $1 billion and are expected to grow about 10 percent annually.

The HeartMate PHP System recently received CE mark and allowed Thoratec to enter the percutaneous heart pump global market, which is expected to exceed $300 million in 2016. Thoratec is also the leader in the global VAD market, which is worth about $750 million.

“By combining the capabilities and leading technologies of both companies, we will be able to expand access, reduce costs and advance heart failure therapies on a global basis,” D. Keith Grossman, president and CEO of Thoratec, said in a statement.

The acquisition will also benefit Thoratec — only about 20 percent of the company’s sales currently come from outside the U.S., but St. Jude’s global presence will help strengthen its international growth.

This marks St. Jude’s second acquisition in the past few months. In early May, St. Jude acquired Spinal Modulation, Inc. and became the only medical device company that offers radiofrequency ablation, spinal cord stimulation and dorsal root ganglion stimulation therapy systems for chronic pain patients.

The transaction is expected to be completed in the fourth quarter of 2015.

You Must Be Logged In To Post A Comment