(NYSE: COV), a leading global provider of healthcare products, today announced a definitive agreement to acquire
The companies expect to complete the acquisition in the first calendar quarter of 2013. Financial terms of the transaction were not disclosed.
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.
“We continue to be focused on technologies that deliver improved patient care, delighting both our physician and hospital system customers,” said Stacy Enxing Seng, President, Vascular Therapies, Covidien. “CV Ingenuity offers a robust DCB portfolio, and offering a DCB technology is something that we believe is necessary to continue to improve care for patients suffering from PAD, as well as ensuring we are a full line partner with our customers today and into the future.”
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 United States Food and Drug Administration approval for a DCB product using the CV Ingenuity technology until fiscal 2017.
Once the transaction has been completed, Covidien will report the CV Ingenuity business as part of its Vascular product line in the Medical Devices segment.