Medical device firm St. Jude Medical has completed the acquisition of California-based spinal cord stimulator maker Spinal Modulation, in a deal worth about $175m.
Spinal Modulation produces Axium Neurostimulator System that received CE mark approval in November 2011 to manage chronic and intractable pain, while in Australia it received TGA approval to manage chronic and intractable pain of the trunk and limbs.
Under the deal, St. Jude Medical has paid around $175m and additional payments will be made upon FDA approval of the Axium system and achievement of certain revenue targets.
The company signed a series of agreements in June 2013, under which it made a $40m equity investment in Spinal Modulation.
The deal provided St. Jude Medical with an exclusive option to acquire the company, in addition to providing it with an exclusive option to distribute the Axium Neurostimulator System in international markets.
St. Jude Medical COO Michael Rousseau said: "Completing the acquisition of Spinal Modulation, Inc. is another important step forward in building momentum and accelerating sales growth across our neuromodulation product portfolio.
In December 2014, Spinal Modulation completed enrollment in its Accurate US IDE trial for the system and submitted PMA application to the FDA in support of marketing approval in the US.
The study is a prospective, randomized, multi-center and controlled study to assess the safety and efficacy of the Axium system to treat chronic pain affecting the lower limbs.
St. Jude noted that the deal turned the firm to become the only medical device manufacturer across the globe to offer radiofrequency ablation (RFA), spinal cord stimulation (SCS) and dorsal root ganglion (DRG) stimulation therapy solutions for the treatment of chronic pain.
Image: St. Jude Medical’s global headquarters. Photo: courtesy of St. Jude Medical, Inc.