Spectranetics Acquires Endovascular Business of Kensey Nash

Spectranetics Corporation today announced it has entered into a definitive agreement to acquire the endovascular business of Kensey Nash Corporation for upfront consideration of $10 million with additional payments up to an aggregate of $14 million, subject to achievement of certain sales, product development and FDA approval objectives. The transaction is subject to customary closing conditions and is expected to close by June 30, 2008.

The commercialized products acquired consist of the QuickCat® thrombus aspiration catheter, ThromCat® thrombectomy device, and SafeCross® products used to treat chronic total occlusions (CTO). These products generated sales of $5.1 million during the year ended December 31, 2007. Kensey Nash will continue to manufacture the ThromCat and SafeCross products for an initial term of three years, which may be extended. Spectranetics expects to assume manufacturing responsibilities for the QuickCat product after a six month transition period. Additionally, after manufacturing of the ThromCat and SafeCross products is transferred to the Company, the Company will be obligated to pay Kensey Nash a share of revenues received from sales of such products. After manufacturing of the QuickCat product has transferred to the Company, there will be no obligation to make additional payments to Kensey Nash related to future sales of the QuickCat product. Spectranetics and Kensey Nash will work together to continue to develop improvements to these products and initial efforts will be targeted at the next generation ThromCat and SafeCross products.

John G. Schulte, Spectranetics’ President and Chief Executive Officer, stated, “The acquisition of the endovascular business of Kensey Nash will both strengthen and broaden our existing presence in the treatment of thrombus and chronic total occlusions. The QuickCat aspiration catheter and the ThromCat mechanical thrombectomy catheter provide a continuum of options for treating thrombus and certainly complement laser ablation for complex disease. The SafeCross wire, which utilizes radiofrequency energy, fits nicely with our QuickCross® catheters for crossing total occlusions when standard guidewires fail. Adding these products to our recently specialized vascular intervention sales organization will leverage our presence with the same physician customers already served prior to this transaction. Throughout our due diligence, we were impressed with the capabilities of the existing Kensey Nash endovascular products and are truly excited about the next generation devices under development. We believe our distribution capabilities combined with the product development expertise of Kensey Nash represent a compelling opportunity to expand the use of these products.”

Joseph W. Kaufmann, President of CEO of Kensey Nash, commented, “Spectranetics is well respected as a market leader in treating arterial blockages with its unique laser atherectomy platform. The addition of our thrombectomy and CTO products to Spectranetics’ business will create a market leading entity that combines Spectranetics’ well-established sales and marketing organization in the thrombus management and CTO markets with Kensey Nash’s product development and manufacturing capabilities.”

SOURCE: BusinessWire