Spectranetics Buys Kensey Nash Endovascular Unit

In a deal announced this week, Spectranetics will acquire Kensey Nash Corporation’s endovascular business for $10 million upfront and additional milestone payments of up to $14 million, pending sales, product development and FDA approval objectives.

Spectranetics will get a suite of products that generated $5.1 million in 2007 sales. These include:

  • QuickCat thrombus aspiration catheter
  • ThromCat thrombectomy device
  • SafeCross products used to treat chronic total occlusions

Kensey will continue to manufacture the ThromCat and SafeCross products for an initial term of three years, which may be extended. Spectranetics will begin manufacturing QuickCat after a six month transition period.

After manufacturing of the ThromCat and SafeCross products is transferred, Spectranetics will be obligated to pay Kensey a share of any revenues. There are no royalties for future sales of the QuickCat line.

Spectranetics’ excimer laser system includes the CVX-300 laser unit and various fiber-optic delivery devices, including disposable catheters and sheaths. The device is used in atherectomy procedures to open clogged or obstructed arteries in the coronary and peripheral vascular system.

Kensey’s endovascular business should strengthen Spectranetics’ portfolio of thrombus and chronic total occlusions treatments and will leverage the Spectranetics’ sales team and existing physician relationships.

Spectranetics and Kensey will work together to improve products, though it is unclear how such a collaboration will unfold, or how mutually beneficial it will be. Initial efforts will be targeted at the next generation ThromCat and SafeCross products

The sale is expected to close by June 30, 2008. Spectranetics is not updating 2008 financial guidance at this time.

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