 |
| MitraClip cardiac device--Courtesy of Abbott |
Abbott ($ABT) will buy two mitral valve replacement startups, moving it even further into med tech after a series of high-profile deals last year. It obviously sees the sector as a way for it to plan for long-term growth--since its innovative biopharma candidates went with AbbVie ($ABBV) when the companies split in early 2013.
The company will acquire Tendyne for up to $250 million, with $225 million paid upfront. While in the other deal with Cephea Valve Technologies, it invested in and gained an option to purchase the company but financial details were undisclosed.
These deals build upon Abbott's existing MitraClip franchise, which is the top performer in its medical device portfolio. In the most recent quarter, MitraClip had double-digit sales growth while the overall device business is only expected to generate low-double-digit growth this year.
Like MitraClip, the valve replacement technologies from the startups do not require open heart surgery. Abbott expects that the market for minimally invasive mitral valve repair and replacement will become a multi-billion segment in the next decade.
"Mitral valve disease is highly complex and requires multiple treatment options in order to tailor the therapy based on each person's anatomy and health situation," said EVP of Ventures at Abbott, John Capek in a statement.
He added, "The Tendyne acquisition and our agreement with Cephea broaden our foundation as one of the leaders in treatments for mitral valve disease, with the goal of bringing promising, less invasive valve treatment technologies to people who need them."
The pair of deals are on par with a trio of deals Abbott did last October to create an electrophysiology business.
Tendyne's Bioprosthetic Mitral Valve System recently started a feasibility clinical trial that the FDA signed off on--and a trial to support a CE mark in Europe is planned for next year. Cephea has a catheter-based mitral valve replacement therapy.
- here is the release