Covidien ($COV) has agreed to buy Sunnyvale, CA-based BARRX Medical, a developer of minimally invasive medical devices used in conjunction with endoscopy to remove precancerous tissue from the gastrointestinal tract, for about $325 million. Additional future earn out payments are possible upon achievement of company milestones.
The acquisition, which is expected to close Jan. 31, is in line with Covidien's strategy to invest in product categories where it can develop a global competitive advantage, the company says in a release. The BARRX buy will allow the company to expand its ability to treat gastrointestinal diseases, such as Barrett's esophagus.
"In today's healthcare environment, patients, physicians, payers and regulators demand that medical interventions be supported by a broad base of clinical evidence," said BARRX CMO David Utley. "A decade ago, BARRX recognized this need for an evidence-based approach for product and procedure development and, therefore, conducted a large number of clinical trials which have demonstrated the safety, efficacy, durability, and cost-utility of the HALO ablation system for treating Barrett's esophagus and esophageal squamous cell neoplasia."
In 2000, BARRX developed an endoscopic device called the HALO360 system for treating Barrett's esophagus. The FDA cleared it the following year for use in the ablation of bleeding and non-bleeding sites in the GI tract, including Barrett's esophagus. The company has a number of cleared products based on its HALO technology being used worldwide.
- see the BARRX release
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