Cardiac stent maker Biosensors International will pay at least $51 million for U.S.-based Spectrum Dynamics, a developer of high-definition medical imaging technology.
The deal, disclosed on May 13, gives Biosensors a personalized medicine edge in a highly competitive global stent market. Plans call for marketing Spectrum's technology as a diagnostic tool to help physicians determine the best possible use of its cardiac stents (or other treatments) to meet individual patients' needs. Biosensors will pay more if the technology meets certain performance goals. Additionally, both sides will combine their sales forces and form a separate joint venture focused on non-cardiac-related technology.
"We believe these innovative applications can offer patients more advanced treatments and, at the same time, help physicians and hospitals reduce the time and money they need to spend on making accurate diagnoses," Biosensors' CEO Jack Wang said in a statement.
Wang added that the deal follows Biosensors' strategy to expand its product offerings and diversify its business.
For Spectrum, the acquisition allows it and its technology to reach patients in more places and in more ways. Spectrum co-said as much in a statement, noting that "the synergy created as a result of this deal will provide us with meaningful resources to better realize the potential of our business." Launched in 2004, the California company already sells products in the U.S., Japan, Europe and Canada, with other product approvals expected. The company touts the fact that it has over 70 patents as well as the high-definition and sensitivity of its nuclear imaging technology, which appears to be of particular benefit for obese patients.
Cardiac stent sales have stagnated in recent years, but the market still remains highly competitive as major players including Abbott ($ABT), Medtronic ($MDT), Boston Scientific ($BSX) and others rush out new stent iterations that keep competition robust. Biosensors says it is now the fourth-largest cardiac stent company in the world. And the company has continued to roll out new products. Among the more recent ones: BioFreedom, a polymer-free drug-coated stent that gained a CE mark earlier this year. Execs are launching the product in select markets this year, with a full-scale rollout expected in 2014.
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