UK-based medical technology firm LivaNova has agreed to purchase the remaining stake in US firm ImThera Medical for around $225m.
The deal includes up-front costs of up to $78m, as well as payment of balance amount based on regulatory and sales milestone achievements.
Based in San Diego of California, ImThera has developed a fully implanted neurostimulation device to treat obstructive sleep apnea (OSA).
The implantable device will stimulate multiple tongue muscles through the hypoglossal nerve, which allows to open the airway while a patient is sleeping.
In 2012, ImThera’s implantable device secured CE mark approval to treat patients with moderate to severe OSA who are unable or unwilling to use continuous positive airway pressure (CPAP) therapy.
The firm’s sleep therapy product includes an implanted small generator and multi-channel electrode lead, in addition to an external handheld remote control that can start, stop or pause therapy
LivaNova CEO Damien McDonald said: “The ImThera device is highly aligned with our existing Neuromodulation business, and we are extremely excited about the opportunity to optimize the technology and fold it into our universal platform.
“In the near term, we will focus on expanding ImThera’s current commercial presence in the European market, while advancing enrollment in a U.S. Food and Drug Administration (FDA) pivotal trial.”
ImThera founder, president and CEO Marcelo Lima said: “We are proud of the accomplishments we have made in developing an effective CPAP alternative for individuals suffering from OSA.”
LivaNova operates three business franchises, including cardiac surgery, neuromodulation and cardiac rhythm management.
In November, MicroPort Scientific agreed to acquire LivaNova’s cardiac rhythm management (CRM) business franchise for around $190m.
LivaNova’s CRM business franchise is engaged in the development, manufacturing and marketing of products for the diagnosis, treatment and management of heart rhythm disorders and heart failures.
Image: LivaNova to acquire the remaining stake in ImThera Medical. Photo: courtesy of adamr / FreeDigitalPhotos.net.