This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

St. Jude Medical Pays $200M for NeuroTherm

Stocks in this article: STJ

NEW YORK (The Deal) -- St. Jude Medical Inc.  (STJ) of St. Paul, Minn., is purchasing NeuroTherm, a manufacturer of radiofrequency ablation systems for interventional pain management, an area of the chronic pain market in which the buyer is weak.

The parties unveiled a definitive agreement Monday in which St. Jude will pay about $200 million in cash for the privately held company. NeuroTherm is based in Wilmington, Mass., and has offices in London, Amsterdam and Germany.

"NeuroTherm's radiofrequency ablation products are an ideal complement to St. Jude Medical's chronic pain portfolio, providing our global sales force with additional interventional pain therapies that offer potential relief to patients earlier in the chronic pain continuum," St. Jude Chief Operating Officer Michael Rousseau said in a statement. The acquisition will make St. Jude "the only medical device manufacturer with both RFA and spinal cord stimulation," he added.

The NeuroTherm acquisition is expected to add about $10 million to $15 million to St. Jude's 2014 sales. It would be neutral to consolidated earnings per share in 2014 and accretive thereafter on a GAAP basis, the company projects.

The deal is expected to close in the third quarter, dependent on customary closing conditions.

NeuroTherm is a portfolio company of Linsalata Capital Partners, a Cleveland-based private equity firm. Linsalata provided a recap for NeuroTherm in February 2011. Also that year, NeuroTherm acquired ArthroCare's interventional spine procedure lines Parallax for verebroplasty and Contour for cavity creation.

Chronic pain affects 1.5 million people worldwide, with 230 million diagnosed in the U.S. in 2013 with acute and chronic pain. About 8% of those individuals received interventional therapy.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs