J&J to buy stroke specialist Micrus Endovascular for $480 million
13 July 2010
Johnson & Johnson (J&J) has entered into an agreement to buy stroke treatment specialist Micrus Endovascular Corp. (Mend) for $480 million, adding stroke-treatment device offerings to its wide breadth of medical products
San Jose, California-based Mend develops and markets both implantable and disposable medical devices used in the treatment of haemorrhagic stroke and intracranial atherosclerosis, which may lead to ischemic stroke.
Under the terms of the agreement, Mend stockholders will receive $23.40 for each outstanding Mend share. The value of the transaction is approximately $480 million.
after the close of the transaction, Mend will join Codman & Shurtleff, Inc, the neuro device business of the DePuy Family of companies within J&J.
Codman and Mend offer innovative and complementary technologies for treating cerebral aneurysms responsible for haemorrhagic stroke. The Codman neurovascular portfolio includes bare platinum coils, vascular reconstruction devices (VRDs) and access devices.
Mend said in a statement that the combined business of Codman and Mend will provide a strong suite of solutions for haemorrhagic stroke, with many promising products in development for ischaemic stroke.
"The merger represents an important strategic move in the neuro device space for us and a significant step forward in the delivery of technologies for the prevention and treatment of stroke," said Michael Mahoney, company group chairman for the DePuy Family of companies. "Together, Codman and Micrus Endovascular will offer clinicians and their patients a full range of stroke treatments and the potential to impact the condition in ways that could not be realised by either company alone."
According to the US National Stroke Association, stroke is the third most common cause of death and the leading cause of serious, long-term adult disability in the US. Each year, approximately 795,000 alone people in the US suffer a stroke.
The majority of victims have an ischaemic stroke, which occurs when arteries are blocked by blood clots or other deposits or narrowed due to atherosclerosis; others experience a hemorrhagic stroke, which occurs when a brain aneurysm bursts. The cost of stroke is estimated to be a staggering $73 billion annually in the US alone.
"Stroke is a significant cause of death and disability around the world. At Mend, we are dedicated to developing innovative approaches to treating stroke and improving the outcomes of people impacted by this condition," said John Kilcoyne, chairman and CEO, Micrus Endovascular.