Philips to purchase medical device maker Spectranetics for $2.2 billion
Healthcare technology Dutch giant Royal Philips will purchase Spectranetics, a Colorado-based company that employs vascular intervention to treat coronary and peripheral artery disease.
Philips announced it would pay $2.2 billion for the acquisition.
The board of directors of Spectranetics approved the transaction. It is expected to close in the third quarter of 2017 and expand and bolster Philips’ Image-Guided Therapy Business Group.
“Today’s exciting announcement follows a series of bolt-on acquisitions to strengthen our portfolio across the health continuum,” Royal Philips CEO Frans van Houten said in a statement. He expects to see positive results by 2018, he added.
“We are pleased to announce this agreement with Philips, which will deliver significant value to our shareholders,” said Scott Drake, President and CEO of Spectranetics. Combining Philips’ innovations in image-guided therapy with Spectranetics’ portfolio and expertise in the therapeutic device space will create exciting opportunities and allow us to accelerate growth.”
Upon completion of the transaction, Spectranetics and its more than 900 employees will become part of the Image-Guided Therapy Business Group within Philips.
Colorado Springs, Colorado-based Spectranetics’ device portfolio for vascular intervention and lead management procedures is growing by double-digits.
Spectranetics treats coronary and peripheral artery disease and provides lead management for the minimally invasive removal of implanted pacemakers and implantable cardioverter defibrillators.
Spectranetics projects 2017 sales to be in the range of $283 million to $306 million.
Spectranetics' portfolio includes a range of laser atherectomy catheters for treatment of blockages with laser energy in both coronary and peripheral arteries; the AngioSculpt scoring balloon used to mechanically push a blockage aside in both peripheral and coronary arteries; the AngioSculptX scoring balloon, the only drug-coated scoring balloon in the market, and the Stellarex drug-coated balloon, which treats common to complex lesions while inhibiting the recurrence of these blockages. The balloon is under review for by the FDA for premarket approval in the U.S.