St Jude Medical and LightLab Imaging have entered into a definitive agreement under which St Jude Medical will acquire LightLab, a subsidiary of Goodman, for approximately $90m in cash.
LightLab develops of Optical Coherence Tomography (OCT), a high resolution diagnostic coronary imaging technology which aids physicians in the treatment of cardiovascular disease. During the second half of 2010, St Jude Medical expects the OCT platform to contribute an additional $20m in revenue to its cardiovascular business.
LightLab had received FDA clearance of the first OCT products to be available in the US. OCT diagnostic imaging technology has been shown to provide image resolution 10 times greater than intravascular ultrasound imaging systems (IVUS) and 20 times faster image capture.
Upon closing, St. Jude Medical will be the first company to offer a portfolio that includes both OCT and Fractional Flow Reserve (FFR) technology. St. Jude Medical claimed that no other OCT systems are currently available for coronary imaging. The combination will provide physicians with comprehensive lesion assessment information, ranging from the anatomical images of OCT to the physiological data of FFR.
St. Jude Medical acquired its FFR measurement technology platform through the acquisition of Radi Medical Systems AB in 2008. The LightLab business will become part of the St. Jude Medical Cardiovascular Division.
The FDA cleared LightLab’s C7-XR Imaging System and companion C7 Dragonfly Imaging Catheter in early May. The intravascular imaging technology, comprising the console used in the hospital lab and the catheter inserted into the vessel, allows the clinician to readily see and measure important vessel characteristics otherwise invisible or difficult to observe with older imaging technology. The next generation OCT system eliminates the need for temporary vessel occlusion that was required by earlier generation OCT systems.
Daniel Starks, chairman, president and chief executive officer of St Jude Medical, said: “We are pleased to add this new growth platform to our cardiovascular business, especially in conjunction with our FFR platform, and we are excited by the many opportunities this acquisition creates for St Jude Medical and LightLab, physician customers and their patients. We welcome LightLab and its employees to St Jude Medical.”
David Kolstad, president and chief executive officer of LightLab, said: “We are excited to join with a partner who shares our vision of improving patient outcomes and reducing health care costs through solutions which enable physicians to make earlier and more accurate treatment decisions.
“We believe St Jude Medical’s US and international footprint, along with its existing FFR measurement technology, will accelerate growth for our industry-leading OCT technology. We look forward to joining the St Jude Medical team.”
The transaction is expected to close by the end of the second quarter, subject to customary closing conditions and regulatory approvals.