News | August 05, 2011

VAD Maker Thoratec Acquires Levitronix, Pediatric Device

August 5, 2011 — Heart failure circulatory support system maker Thoratec Corp. announced it acquired the medical business of ventricular assist device (VAD) maker Levitronix Medical. The company developed a pediatric VAD, which is currently pending U.S. Food and Drug Administration (FDA) clearance. Levitronix was purchased in a cash payment of $110 million, as well as potential future cash earnout payments of up to $40 million.

The acquisition of Levitronix follows a successful strategic partnership between the two companies. Since 2006, Thoratec has provided distribution and clinical support in the United States for the CentriMag Acute Circulatory Support System, Levitronix Medical's flagship product, under an agreement that was scheduled to expire at the end of 2011.

Levitronix and Thoratec have also collaborated on the development of the fully magnetically levitated motor technology employed in the HeartMate III left ventricular assist system, which is currently in preclinical testing.

Levitronix Medical has built a leadership position in magnetically levitated, bearingless mechanical circulatory support, with current and pipeline programs in cardiac and respiratory assist. CentriMag, the company’s lead commercial product, is an extracorporeal, centrifugal flow blood pump used for short-term surgical support. The company also manufactures and markets an acute pediatric surgical support system, known as PediMag in the United States and PediVAS in international markets.

The transaction does not include Levitronix's fluid handling business, which will continue to sell pumps and flowmeters under the Levitronix name.

Consideration for the acquisition includes an initial cash payment by Thoratec of $110 million, using cash on hand, and additional potential cash earnout payments (not to exceed $40 million) tied to the revenue attributable to the products of the acquired business through 2015.

In 2010, Thoratec recorded U.S. CentriMag sales of $17.7 million, an increase of 40 percent compared to 2009 sales of $12.6 million. In addition to revenue related to its historical agreement with Thoratec, Levitronix recorded $8 million in product-related revenue in 2010, consisting of sales of CentriMag in international markets and global sales of PediMag/PediVAS. Going forward, Thoratec will record full worldwide revenues for both products at an improved gross profit margin relative to the previous CentriMag distribution arrangement.

For more information:

Related Content

Montreal Heart Institute Performs First Robotic Mitral Valve Surgery
News | Robotic Systems| September 22, 2017
The Montreal Heart Institute (MHI) announced the acquisition of the da Vinci Xi, a new-generation surgical robot, and...
MyoKardia Presents Additional Positive Data From Phase 2 PIONEER-HCM Study at HFSA 2017
News | Heart Failure| September 21, 2017
MyoKardia Inc. announced that additional positive data from the first patient cohort of its Phase 2 PIONEER-HCM study...
Heart Failure Market to Surpass $16 Billion by 2026
News | Heart Failure| September 19, 2017
The heart failure space across the seven key markets of the U.S., France, Germany, Italy, Spain, the U.K. and Japan is...
Gecko Biomedical Receives CE Mark Approval for Setalum Sealant
News | Cardiovascular Surgery| September 19, 2017
Gecko Biomedical announced it has received CE Mark approval for its Setalum Sealant, allowing the company to market its...
ClearFlow Inc. Announces Positive U.S. Clinical Trial Results
News | Cardiovascular Surgery| September 08, 2017
September 8, 2017 — ClearFlow Inc.
LAA closure during open heart surgery in the LAACS Study showed better outcomes for all patients.

LAA closure during open heart surgery in the LAACS Study showed better outcomes for all patients.

Feature | Left Atrial Appendage (LAA) Occluders| September 07, 2017
September 7, 2017 — Closure of the left atrial appendage (LAA) during heart surgery protects the brain, according to
Heart Failure Patients, Clinicians Have Differing Perceptions of Risk Level
News | Heart Failure| September 06, 2017
September 6, 2017 — Physicians identified a majority of patients with advanced...
Israeli Hospital Completes First Implant of CORolla Heart Failure Device
News | Heart Failure| September 05, 2017
Rambam Hospital in Haifa, Israel, recently became the first to use the CORolla device from Israeli start-up company...
Abbott Receives FDA Approval for HeartMate 3 Left Ventricular Assist System
Technology | Ventricular Assist Devices (VAD)| August 29, 2017
Abbott announced it has received U.S. Food and Drug Administration (FDA) approval for its Full MagLev HeartMate 3 Left...
Sponsored Content | Videos | Cardiovascular Ultrasound| August 28, 2017
This video educational session, provided in partnership with the American Society of Echocardiography (ASE), is title
Overlay Init