Covidien to buy Barrx Medical Inc for $325 mn
23 November 2011
Covidien Plc, one of the world's largest healthcare devices and disposables makers, is acquiring privately held Barrx Medical Inc for $325 million in order to expand its portfolio of drugs that treat gastrointestinal diseases.
Formerly Tyco Healthcare, Dublin, Ireland-based Covidien, will acquire Barrx for $325 million, with potential future earn out payments based on achieving specific milestones.
Covidien said Barrx is the leader in treatment of Barrett's oesophagus syndrome using bipolar radiofrequency (RF) ablation devices.
Barrett's oesophagus syndrome is a precancerous condition of the lining of the esophagus, often a precursor to oesophageal cancer and often the result of gastro esophageal reflux disease.
Sunnyvale, California-based Barrx investors include Delphi Ventures, Highland Capital, Sutter Hill Ventures, Alloy ventures and others
Left untreated, Barrett's can lead to oesophageal adenocarcinoma, a cancer with less than 15 per cent five-year survival. Barrx's HALO90, HALO90 ULTRA and HALO360+ ablation catheters, driven by the Haloflex ablation system, provide a uniform and controlled ablation effect that removes diseased tissue and allows re-growth of normal cells.