Covidien to Increase Portfolio of Drug-Coated Balloon Technology
Posted on January 3, 2013 @ 11:57 am
Covidien plans to buy CV Ingenuity, a drug-coated balloon manufacturer based in Fremont, Calif.
The companies expect to complete the acquisition in the first calendar quarter of this year. Financial terms of the transaction were not disclosed. Once the transaction has been completed, Covidien will report the CV Ingenuity business as part of its Vascular product line in its Medical Devices segment.
“We continue to be focused on technologies that deliver improved patient care, delighting both our physician and hospital system customers,” said Stacy Enxing Seng, president of Covidien’s Vascular Therapies business. “CV Ingenuity offers a robust DCB portfolio, and offering a DCB technology is something that we believe is necessary to continue to improve care for patients suffering from PAD (peripheral artery disease), as well as ensuring we are a full line partner with our customers today and into the future.”
Covidien expects to increase research and development spending for the next several years to fund the clinical development of CV Ingenuity technologies. Additional expenditures are expected to be more than $20 million in the second half of fiscal 2013 and more than $30 million in fiscal 2014. Also, Covidien does not expect U.S. Food and Drug Administration approval for a DCB product based on CV Ingenuity technology until fiscal 2017.
Increased costs due to R&D and the acquisition have not changed earlier financial guidance provided by the company. In November, company officials said they expect sales growth of 3 to 6 percent for 2013 (which means revenues of $12.21 to $12.56 billion). These estimates are in line with Wall Street’s expectations.
Covidien’s U.S. base is in Mansfield, Mass.
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