Spectranetics Strengthens Vascular Portfolio With Purchase of Upstream Peripheral Technologies
January 8, 2013 — Spectranetics Corp. announced an agreement to purchase the assets of Upstream Peripheral Technologies Ltd., an affiliate of Aran Research Development and Prototypes Ltd. The deal includes upfront consideration of $5.5 million with additional milestone payments tied to revenue, manufacturing transfer and other milestones specified in the asset purchase agreement. Included in the acquisition are unique technologies that expand Spectranetics' vascular intervention portfolio. The products have received U.S. Food and Drug Administration (FDA) 510(k) clearance and have been issued CE marks. A full launch in the United States and Europe will occur in February 2013.
The Israeli-based Upstream Peripheral Technologies products were developed to minimize radiation exposure in peripheral vascular procedures generally and decrease procedure time specifically in retrograde access procedures. The Quick-Access Needle Holder is an easy-to-use device that helps physicians access vessels safely and efficiently. The Quick-Cross Capture Guidewire Connector enables physicians to easily, reliably and safely capture and exchange guidewires in retrograde procedures. It works by utilizing a low-pressure balloon, which centers the funnel-shaped device within the vessel and captures the guidewire quickly without damaging the wire or the vessel.
The company expects to generate positive cash flow from the transaction in 2013, excluding the purchase price and related milestone payments. Consistent with past practice, the financial impact will be incorporated into the company's guidance following sufficient commercial experience.
"Crossing a chronic total occlusion (CTO) using the retrograde approach can be a very tricky and time-consuming procedure," said Donald Jacobs of St. Louis University. "The Quick-Access and the Quick-Cross Capture have made this procedure more predictable and efficient."
Dr. Andrej Schmidt of Park Hospital Leipzig, Germany, said, "As a busy interventionalist, I worry about constant radiation exposure. I now regularly use the needle holder when I need fluoroscopic guidance for vessel access to keep my hands as far away as possible from the radiation field. Additionally, the wire catcher speeds procedure time, further reducing radiation exposure for my patients and me."
Spectranetics President and CEO Scott Drake said, "This acquisition is a move consistent with our strategy to treat challenging endovascular lesions. The technologies are complementary to our vascular portfolio and enable us to leverage our current call points."
"We are excited to see our innovations in the hands of physicians to improve patients' lives. With the strength of its sales force and the strategic focus on lower extremity procedures, Spectranetics is the perfect acquirer of these technologies," said Abi Zakai, chairman of Upstream Peripheral Technologies Ltd.
For more information: www.spectranetics.com