AngioDynamics to Buy Microsulis

AngioDynamics, an Albany, N.Y.-based minimally invasive medical devices for vascular access, surgery, peripheral vascular disease and oncology, has inked a deal to acquire Microsulis Medical Ltd. The transaction brings microwave ablation technology to AngioDynamics, a technique of tissue removal often seen as a better alternative to radiofrequency (RF) ablation.

Microsulis, based in Denmead, England, is a medical device company specializing in minimally invasive, microwave ablation technology for the coagulation of soft tissue and, the company claims, has systems in more than 80 hospitals worldwide. Microsulis developed the Accu2i pMTA microwave ablation system for percutaneous use, which uses a single, high-power, high-frequency 2.45 GHz saline-cooled needle that reportedly enables faster and larger soft tissue ablations. The device was CE marked in February 2010 and 510(k) cleared by the U.S. Food and Drug Administration (FDA) in August the same year. In December 2012, Microsulis was granted 510(k) clearance by the FDA to market an upgraded Accu2i pMTA applicator.

In March last year, AngioDynamics and Microsulis established a strategic relationship granting AngioDynamics exclusive distribution rights to market and sell the Accu2i pMTA microwave ablation system in all markets outside the United States from May 2012 through December 2013. The agreement included the exclusive option to purchase substantially all of the global assets and certain liabilities of Microsulis, including its microwave ablation technology and worldwide distribution rights.

“This transaction strengthens AngioDynamics’ position as the clear market-leading innovator in the $250 million global tissue ablation market, with a complete offering of thermal and non-thermal technologies that includes microwave, radiofrequency and the NanoKnife system,” said Joseph M. DeVivo, president and CEO of AngioDynamics. “The nine months we’ve operated with Microsulis under the strategic relationship initiated in March 2012 has further proven to us this technology is the most innovative microwave system on the market today.”

According to DeVivo, AngioDynamics’ thermal ablation business (which generated $23 million of global sales in fiscal year 2012) has remained static over the last three years. He expects sales to grow at an average of 20 percent annually over the next three years with the addition of microwave. “We look forward to launching the second generation Accu2i pMTA applicator in the U.S. shortly after the transaction closes,” he added.

Under the terms of the definitive agreement, AngioDynamics will acquire certain assets of Microsulis Medical for an upfront cash payment of $10 million, and $5 million on Dec. 31, using cash on hand. AngioDynamics also will assume up to $1 million of liabilities. Microsulis stakeholders also could receive additional cash consideration, based on Microsulis’ performance over the next nine years. The deal should close by the end of January.