St. Jude Buys Imaging Company for $90 Million

St. Jude Medical Inc. has purchased LightLab Imaging Inc. for about $90 million in cash.

Westford, Mass.-based LightLab has developed technology called optical coherence tomography (OCT), a high-resolution coronary imaging system that helps doctors treat heart disease. According to LightLab, OCT diagnostic imaging technology improves image resolution 10 times better than intravascular ultrasound imaging systems and 20 timese faster than image capture.

Earlier this month LightLab, a subsidiary of Goodman Co. Ltd., received U.S. Food and Drug Administration clearance to sell OCT products in the United States.

St. Jude executives said they expect the OCT platform to contribute an additional $20 million in revenue to its cardiovascular business in the second half of this year. The OCT market is expected to grow at a double-digit annual rate over the next five years.

“We are pleased to add this new growth platform to our cardiovascular business, especially in conjunction with our FFR platform, and we are excited by the many opportunities this acquisition creates for St. Jude Medical and LightLab, physician customers and their patients,” said Daniel J. Starks, St. Jude chairman, president and CEO.

LightLab executives believe the acquisition will help expand the growth of its OCT technology.

“We are pleased to join with a partner who shares our vision of improving patient outcomes and reducing health care costs through solutions which enable physicians to make earlier and more accurate treatment decisions,” said David Kolstad, LightLab president and CEO. “We believe St. Jude Medical’s U.S. and international footprint, along with its existing FFR measurement technology, will accelerate growth for our industry-leading OCT technology.”

The transaction is expected to close by the end of the second quarter. St. Jude officials said the acquisition does not change its outlook for 2010.