RadiMedical AB
St. Jude Medical, Inc. Completes $250 Million Acquisition
December 22, 2008
by Joan Trombetti, Writer
St. Jude Medical, Inc. and RadiMedical AB announced the completion of St. Jude Medical's acquisition of Radi Medical Systems AB for $250 million in cash.
Radi Medical Systems is the world leader in two segments of the market for cardiovascular medical devices in which St. Jude Medical does not currently participate. For 2008, Radi Medical Systems is expected to generate approximately $80 million in sales, a 19% increase over 2007.
Radi Medical Systems' pressure measurement guidewire, PressureWire® Certus, comprises approximately a 70% share of the global market for physiological assessment of coronary lesions. The product is supported by a large and growing body of clinical evidence, including the FAME ("Fractional Flow Reserve vs. Angiography for Multivessel Evaluation") study. The results of the FAME study were presented at the Transcatheter Cardiovascular Therapeutics conference in October 2008, and can be viewed at www.famestudy.com. The market for physiological assessment of coronary lesions totaled over $60 million in 2008 and is projected to continue growing at a strong double-digit rate.
Radi Medical Systems' FemoStop® and RadiStop® product lines comprise approximately a 60% share of the global market for manual compression-assist products for vascular closure. This market totaled approximately $45 million in 2008 and is projected to continue to grow at least at a mid single-digit rate. The FemoStop and RadiStop product lines, together with St. Jude Medical's world-leading Angio-Seal™ line of active vascular closure products, will be part of an expanded program by St. Jude Medical to fully develop the potential of a global vascular closure device market that is only about 27% penetrated.
Thomas Engstrom, chief executive officer of Radi Medical Systems said, "We are pleased to join with the industry leader in active vascular closure and a partner who shares our vision of developing innovative cardiovascular technologies that improve patient care. This transaction brings together complementary product lines and, through St. Jude Medical's sales and distribution infrastructure, extends our reach to even more physician customers for the benefit of the patients they help every day."
With this transaction, Radi Medical Systems will become part of the St. Jude Medical Cardiovascular Division. The transaction is expected to be neutral to St. Jude Medical's consolidated earnings per share in 2009 and is expected to be positive to consolidated earnings per share beginning in 2010. St. Jude Medical funded the acquisition with cash on hand outside the United States as well as with the proceeds from a new three-year term loan established recently with a syndicate of banks.
About Radi Medical Systems
Radi Medical Systems develops, manufactures and sells medical devices designed to improve patient care. The company's pioneering work in the field of interventional cardiology has resulted in market-leading intravascular sensors and hemostasis management devices. Radi Medical Systems works closely with medical practitioners to develop solutions that address clinical needs, as well as provide clinical education and support. Founded in 1988, Radi Medical Systems employs approximately 380 people globally and has representation in more than 60 countries. The company is based in Uppsala, Sweden. For more information, visit www.radi.se.
About FAME
The FAME study is the world's first randomized, prospective, multicenter trial to compare clinical outcomes and the cost-effectiveness of physiologic-guided percutaneous coronary interventions (PCI) to an angiographic-guided PCI's in patients with multi vessel coronary artery disease. Results from the FAME study were presented at the Transcatheter Cardiovascular Therapeutics symposium in October 2008. Additional information about the FAME study is available at www.famestudy.com.
About St. Jude Medical
St. Jude Medical develops medical technology and services that focus on putting more control into the hands of those who treat cardiac, neurological and chronic pain patients worldwide. The company is dedicated to advancing the practice of medicine by reducing risk wherever possible and contributing to successful outcomes for every patient. Headquartered in St. Paul, Minn., St. Jude Medical employs more than 13,000 people worldwide and has five major focus areas that include: cardiac rhythm management, atrial fibrillation, cardiac surgery, cardiology and neuromodulation. For more information, please visit www.sjm.com.
Radi Medical Systems is the world leader in two segments of the market for cardiovascular medical devices in which St. Jude Medical does not currently participate. For 2008, Radi Medical Systems is expected to generate approximately $80 million in sales, a 19% increase over 2007.
Radi Medical Systems' pressure measurement guidewire, PressureWire® Certus, comprises approximately a 70% share of the global market for physiological assessment of coronary lesions. The product is supported by a large and growing body of clinical evidence, including the FAME ("Fractional Flow Reserve vs. Angiography for Multivessel Evaluation") study. The results of the FAME study were presented at the Transcatheter Cardiovascular Therapeutics conference in October 2008, and can be viewed at www.famestudy.com. The market for physiological assessment of coronary lesions totaled over $60 million in 2008 and is projected to continue growing at a strong double-digit rate.
Radi Medical Systems' FemoStop® and RadiStop® product lines comprise approximately a 60% share of the global market for manual compression-assist products for vascular closure. This market totaled approximately $45 million in 2008 and is projected to continue to grow at least at a mid single-digit rate. The FemoStop and RadiStop product lines, together with St. Jude Medical's world-leading Angio-Seal™ line of active vascular closure products, will be part of an expanded program by St. Jude Medical to fully develop the potential of a global vascular closure device market that is only about 27% penetrated.
Thomas Engstrom, chief executive officer of Radi Medical Systems said, "We are pleased to join with the industry leader in active vascular closure and a partner who shares our vision of developing innovative cardiovascular technologies that improve patient care. This transaction brings together complementary product lines and, through St. Jude Medical's sales and distribution infrastructure, extends our reach to even more physician customers for the benefit of the patients they help every day."
With this transaction, Radi Medical Systems will become part of the St. Jude Medical Cardiovascular Division. The transaction is expected to be neutral to St. Jude Medical's consolidated earnings per share in 2009 and is expected to be positive to consolidated earnings per share beginning in 2010. St. Jude Medical funded the acquisition with cash on hand outside the United States as well as with the proceeds from a new three-year term loan established recently with a syndicate of banks.
About Radi Medical Systems
Radi Medical Systems develops, manufactures and sells medical devices designed to improve patient care. The company's pioneering work in the field of interventional cardiology has resulted in market-leading intravascular sensors and hemostasis management devices. Radi Medical Systems works closely with medical practitioners to develop solutions that address clinical needs, as well as provide clinical education and support. Founded in 1988, Radi Medical Systems employs approximately 380 people globally and has representation in more than 60 countries. The company is based in Uppsala, Sweden. For more information, visit www.radi.se.
About FAME
The FAME study is the world's first randomized, prospective, multicenter trial to compare clinical outcomes and the cost-effectiveness of physiologic-guided percutaneous coronary interventions (PCI) to an angiographic-guided PCI's in patients with multi vessel coronary artery disease. Results from the FAME study were presented at the Transcatheter Cardiovascular Therapeutics symposium in October 2008. Additional information about the FAME study is available at www.famestudy.com.
About St. Jude Medical
St. Jude Medical develops medical technology and services that focus on putting more control into the hands of those who treat cardiac, neurological and chronic pain patients worldwide. The company is dedicated to advancing the practice of medicine by reducing risk wherever possible and contributing to successful outcomes for every patient. Headquartered in St. Paul, Minn., St. Jude Medical employs more than 13,000 people worldwide and has five major focus areas that include: cardiac rhythm management, atrial fibrillation, cardiac surgery, cardiology and neuromodulation. For more information, please visit www.sjm.com.