St. Jude Medical, Inc. (NYSE: STJ), a global medical device company, today announced the acquisition of Endosense SA, a Switzerland-based company that has pioneered contact-force measurement in catheter ablation. The acquisition adds to the company’s leading electrophysiology portfolio and provides a robust platform for future product development.
St. Jude Medical has made an initial payment of approximately 159 million Swiss francs ($170 million USD) and acquired 100 percent of the outstanding equity of Endosense. The terms of the transaction also provide for an additional cash payment of up to 150 million Swiss francs ($161 million USD), which is contingent upon both the achievement and timing of a regulatory milestone. The company funded the initial payment using available cash from outside of the U.S. and expects to make any future payments using these same cash balances. Except for acquisition-related expenses, this acquisition does not impact St. Jude Medical’s outlook for 2013 consolidated earnings per share.
Endosense Force-Sensing Technology
Endosense developed the TactiCath irrigated ablation catheter to give physicians a real-time, objective measure of the force they apply to the heart wall during a catheter ablation procedure. Without contact-force data, physicians have to estimate the amount of force applied to the heart wall during an ablation. If too little force is applied, there is a risk of incomplete lesion formation that could result in AF recurrence, potentially requiring additional treatments. If too much force is applied, there is a risk of tissue injury, which can lead to serious procedure-related complications.“Force sensing is a tremendous advancement in cardiac ablation that will potentially improve safety and efficacy, likely becoming a standard for all cardiac ablations,” said Dr. Vivek Reddy, professor of medicine and principal investigator in the TOCCASTAR trial at Mount Sinai Hospital, N.Y. “As the first and most studied force-sensing catheter on the market, TactiCath now provides St. Jude Medical with a best-in-class ablation catheter.”