Atlanta-based CryoLife has inked a deal to buy Cardiogenesis Corporation for $22 million--a 43 percent premium to Cardiogenesis' closing price on March 28. The Irvine, CA-based developer makes surgical products for patients with refractory angina resulting from diffuse coronary artery disease. It posted $11.3 million in sales last year.
Cardiogenesis' technology is used to preform a surgical procedure known as Transmyocardial Revascularization (TMR), which treats patients with angina that is not responsive to medications, the companies said in a release. The technique has a current market potential of $175 million, but CryoLife thinks that number could swell to $700 million in the U.S. alone as developers look to deliver biologic materials like stem cells using TMR.
"Cardiogenesis brings developed technologies with proven clinical outcomes in the treatment of cardiovascular disease and a pipeline of potential new products that build on the TMR platform," said CryoLife CEO Steven Anderson. "Cardiogenesis' products greatly expand our customer offerings and we believe they will create opportunities for us to cross sell and rollout Cardiogenesis' products on a global platform."
- here's CryoLife's release