St Jude Medical completes takeover of LightLab Imaging
14 July 2010
St. Jude Medical, Inc. (NYSE:STJ) has completed the
acquisition of LightLab Imaging, Inc. for approximately $90 million in
cash.
LightLab is a pioneer and leader in the development of Optical
Coherence Tomography (OCT), a high resolution diagnostic coronary
imaging technology. LightLab’s OCT systems and imaging catheters are
cleared for sale in 40 countries in Europe, Asia, the Middle East
and North and South America.
The acquisition of OCT technology accelerates the expansion of
St. Jude Medical’s cardiovascular growth platform by providing the
company with a comprehensive product offering that will allow the
Company to compete in, and potentially expand, the intravascular
imaging market.
The IVUS market is estimated to be $500 million for 2010 and to
grow 10 to 15 percent annually. During the second half of 2010, St.
Jude Medical expects the OCT platform to contribute an additional
$20 million in revenue to its cardiovascular business. The OCT
market is expected to grow at a double-digit compounded annual rate
over the next five years and is expected to capture IVUS market
share.
The combination of both OCT and the complementary Fractional Flow
Reserve (FFR) technology will provide physicians with comprehensive
lesion assessment information; FFR provides physiological data to
help physicians determine which lesions to treat, and OCT provides
anatomical images which can help guide stent selection and
deployment as well as provide post-stenting information to help
ensure the procedure went smoothly.
“We are pleased to have completed this transaction, and we
welcome LightLab employees to St. Jude Medical,” said Daniel J.
Starks, Chairman, President and Chief Executive Officer of St. Jude
Medical. “The OCT technology is the ideal complement to our FFR
technology and provides us with a comprehensive platform that will
help us to grow our cardiovascular business.”
David Kolstad, President and Chief Executive Officer of LightLab,
added, “The LightLab team is excited to join St. Jude Medical, and
we look forward to further strengthening the company’s
interventional cardiology business with the OCT technology. There is
a strong alignment between St. Jude Medical and LightLab both in our
product portfolios and our shared vision of improving patient
outcomes through solutions which enable physicians to make earlier
and more accurate treatment decisions.”
With this transaction, LightLab will become a part of the St.
Jude Medical Cardiovascular Division, and Mr. Kolstad will join the
company.