Abbott announced on 10 September 2009 a definitive agreement to acquire the outstanding equity of Evalve, a global leader in the development of devices for minimally invasive repair of cardiac mitral valves. The acquisition provides Abbott with a presence in the growing area of non-surgical treatment for structural heart disease. The agreement includes an upfront payment of US$320 million in cash, plus an additional payment upon completion of certain regulatory milestones, for a total of up to US$410 million.
“The acquisition of Evalve will provide Abbott with leading technology in the emerging field of minimally invasive heart valve repair and further broadens Abbott’s medical devices portfolio,” said John M Capek, executive vice president, Medical Devices, Abbott. “Evalve is on the cutting edge with its non-surgical approach to treating structural heart disease. With this breakthrough mitral valve repair technology, physicians will be able to offer their patients a minimally invasive alternative to open heart surgery – not unlike the opportunity that stents provided more than two decades ago for the treatment of coronary artery disease.”
Evalve’s minimally invasive catheter-based MitraClip system, used to clip the leaflets of the mitral valve together to reduce regurgitation, is the first commercially available treatment option approved in Europe for non-surgical mitral valve repair for patients suffering from the effects of mitral regurgitation. The MitraClip system is an investigational device in the US and is currently in clinical trials.
“Combining Evalve’s first in class mitral valve repair technology with Abbott’s global presence, commercial infrastructure and manufacturing expertise will help advance minimally invasive treatment options for the millions of patients with mitral regurgitation,” said Robert Hance, senior vice president, vascular, Abbott. “We look forward to welcoming Evalve as a key part of Abbott’s vascular business.”
“Patients in Europe have benefited from having access to the MitraClip technology since it received CE mark last year,” said Ferolyn Powell, president and chief executive officer of Evalve, who will continue to lead the Evalve team and will report to Hance after the acquisition closes. “We look forward to becoming a part of Abbott and working together to accelerate our business and expand our global reach to patients around the world with our minimally invasive technologies.”
Under the terms of the agreement, Abbott will acquire the remaining 90% of outstanding equity of Evalve, that it does not already own for an upfront payment of US$320 million, plus a US$90 million payment if certain regulatory milestones are met. The transaction does not impact Abbott’s previously issued earnings-per-share guidance for 2009.
The transaction is subject to customary closing conditions, including antitrust clearances. Abbott expects the transaction to close in the fourth quarter of 2009.
