Medtronic Completes
Acquisition of Ardian
Interventional Therapy Addresses Uncontrolled Hypertension with Renal Denervation
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January 13, 2011 -- Minneapolis and Mountain
View, California --
Medtronic, Inc. (NYSE: MDT), today announced that it has completed
the acquisition of privately-held Ardian, Inc., a developer of
catheter-based therapies to treat hypertension and related conditions.
Under the terms of the agreement announced on Nov. 22, 2010, the
purchase price is $800 million in cash up front, plus additional
cash payments equal to annual revenue growth through the end of
Medtronic’s fiscal year 2015. Medtronic had previously invested in Ardian and, prior to completion of the acquisition, held an 11.3 percent ownership stake in the Company. Medtronic expects to recognize a one-time gain on its ownership stake of approximately $80 million, which will be partially off-set by one-time transaction and acquisition costs in fiscal year 2011. Excluding the one-time gain, it is estimated the acquisition will be approximately $0.02 dilutive in Q4 fiscal year 2011, and between $0.05 to $0.06 dilutive in fiscal year 2012. Hypertension is the leading attributable cause of death worldwide. It is a significant, escalating global healthcare problem affecting approximately 1.2 billion people and is associated with an increased risk of heart attack, stroke, heart failure, kidney disease and death. Hypertension is estimated to have a direct cost to the global healthcare system of more than $500 billion annually. Ardian’s flagship product, the Symplicity® Catheter System™, addresses uncontrolled hypertension through renal denervation, or ablation of the nerves lining the renal arteries. It has received the CE (Conformité Européene) mark and Australia’s
Therapeutic Goods Administration (TGA) listing, but is not yet
approved by the U.S. Food and Drug Administration (FDA). Acquiring
Ardian offers Medtronic the opportunity to lead the development
of renal denervation for the treatment of uncontrolled hypertension.
The acquisition augments Medtronic’s existing interventional therapies and complements the company’s
expertise in catheter design and ablation technologies.
About Ardian
Ardian, Inc., based in Mountain View, Calif., develops catheter-based
therapies to treat hypertension and related conditions. Ardian
is the eighth company created by The Foundry, a leading medical
device incubator based in Menlo Park, Calif. Prior to the acquisition,
Ardian’s investors included Morgenthaler Ventures, Advanced Technology
Ventures, Split Rock Partners, Medtronic and Emergent Medical
Partners. For more information, please visit www.ardian.com.
About Medtronic
Medtronic, Inc. (www.medtronic.com),
headquartered in Minneapolis, is the global leader in medical technology – alleviating
pain, restoring health and extending life for millions of people
around the world.
This press release contains forward-looking
statements that involve risks and uncertainties. Such forward-looking
statements
include expectations regarding Medtronic’s operations as they relate
to Ardian’s products. The statements in this release are based
upon current expectations and are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements, including
risks related to the integration of Ardian into Medtronic, the
anticipated future benefits (including cost savings and other synergies)
resulting from the acquisition of Ardian, difficulties and delays
inherent in the development, manufacturing, marketing and sale
of medical products, government regulation, general economic conditions
and other risks and uncertainties set forth in Medtronic’s
periodic reports on file with the Securities and Exchange Commission.
Actual results may differ materially from anticipated results.
Medtronic disclaims any obligation to update or revise statements
contained in this press release based on new information, future
events or otherwise.
Source: Medtronic,
Inc.
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