Boston Scientific has signed a definitive merger agreement, under which it will acquire Sadra Medical, a development-stage company in Los Gatos, California.
The agreement calls for an upfront payment of $225m plus additional potential payments of up to $225m upon achievement of specified regulatory and revenue-based milestones through 2016.
The purchase price assumes no cash and no debt on Sadra’s balance sheet at closing said that the upfront payment is expected to be funded with cash on hand.
Sadra has completed a series of European feasibility studies for its Lotus Valve System, a fully repositionable device for percutaneous aortic valve replacement to treat patients with severe aortic stenosis.
The Lotus Valve System consists of a stent-mounted tissue valve prosthesis and catheter delivery system for guidance and placement of the valve.
The low-profile delivery system and introducer sheath are designed to enable accurate positioning, repositioning and retrieval at any time prior to release of the aortic valve implant.
Sadra president and CEO Ken Martin said that they look forward to building upon their existing relationship with Boston Scientific and working together toward commercial success of the Lotus Valve System, which is designed to simplify and improve the entire aortic valve replacement procedure.
"Both Sadra and Boston Scientific believe that the unique ability to reposition and retrieve the Lotus Valve provides interventional cardiologists with greater control and allows them to determine if the valve is accurately placed and working properly prior to completing the procedure," Martin said.
Boston Scientific president and CEO Ray Elliott said that this acquisition represents another critical step in the execution of their strategy to realign Boston Scientific’s portfolio.