Find and Treat Coronary Artery Disease with Bayer’s Medrad-Possis Posse

Bayer Healthcare affiliate Medrad and Minneapolis, MN-based Possis Medical have entered into a definitive merger agreement whereby Medrad will acquire Possis for $19.50 a share, or $361 million.

The merger will capitalize on each company’s strengths to create a synergistic cardiovascular portfolio and sales force.

The offer represents a premium of approximately 39% over Possis’ recent share price.

Medrad develops contrast injection systems used to diagnose cardiovascular and other diseases. The company’s diagnostic imaging product line includes vascular injection systems, magnetic resonance surface coils and patient care products. Revenues are also generated through the sale of disposables; primarily, high pressure, large volume syringes used with Medrad and third party injection systems. Medrad revenues totaled $478 million in 2006.

Possis develops mechanical thrombectomy devices that use waterjet technology to remove blood clots from arteries and veins, as well as from synthetic and saphenous vein grafts. The company’s primary product, AngioJet, is the only mechanical thrombectomy device approved for the coronary vasculature. Over 300,000 patients worldwide have been treated with AngioJet therapy. The recently launched the AngioJet Ultra, an easier-to-use system, has been a key growth driver over the last four quarters.

The proposed combination will join two “highly compatible” sales organizations that can target the same customers, potentially expanding the reach of both companies. Medrad’s international distribution infrastructure will allow Possis’ thrombectomy portfolio to gain marketshare in – what the company describes as – largely underpenetrated international markets. International sales accounted for only 3% percent of Possis’ $66.7 million in revenues last year.

The complimentary focus on high pressure intravascular fluid management will create a broadened base for the development of new products.

“This merger will capitalize on both companies’ strengths to deliver growth in our current markets, and create a formidable cardiovascular portfolio in the future. It is a truly compatible partnership in terms of product performance, company growth and employee culture.” said John P. Friel, Medrad President and CEO.

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