St. Jude Medical Completes Thoratec Acquisition

St. Jude Medical Inc. completed its acquisition of Pleasanton, Calif.-based Thoratec Corp., a maker of mechanical circulatory support technology for the treatment of advanced heart failure.

The acquisition will add the HeartMate II VAD left ventricular assist device (VAD), as well as the HeartMate 3 and HeartMate PHP devices.

“St. Jude Medical is excited to bring together two companies that are considered heart failure therapy leaders and build on our established franchise that is now uniquely positioned to offer physicians and patients innovative solutions across the heart failure continuum,” said St. Jude Medical’s Chief Operating Officer and incoming President and Chief Executive Officer Michael T. Rousseau. “We believe this acquisition represents a tremendous opportunity and we welcome Thoratec’s employees as we look forward to changing the way the world views the treatment of this expensive epidemic disease.”

The transaction is valued at approximately $3.3 billion. Under the terms of the transaction, each share of Thoratec outstanding as of the closing has been converted into the right to receive $63.50 in cash, without interest. St. Jude Medical continues to expect this transaction to be accretive to adjusted earnings per share in 2016.

Because of the shortage of donor hearts, researchers have developed VADs, which help the ventricles pump blood, easing the workload of the heart in patients with heart failure. If the device is used to help the left ventricle, it is called a left ventricular assist device (LVAD). If it is used to help the right ventricle, it is called a right ventricular assist device. For most patients, only the left ventricle needs support, therefore the vast majority of VAD therapy consists of LVADs.

The HeartMate II LVAD is implanted alongside a patient’s heart and designed to supplement the pumping of the weakened heart’s left ventricle, which is responsible for pumping oxygen-rich blood from the lungs throughout the body. Designed to provide long-term cardiac support for patients who have advanced heart failure, more than 21,000 patients have been implanted with a HeartMate II VAD through trial enrollment and commercial use worldwide. The device was approved by the U.S. Food and Drug Administration for patients awaiting transplantation (also known as bridge-to-transplantation) in 2008 and patients who are not candidates for cardiac transplantation (also known as destination therapy) in 2010.

The HeartMate 3 VAD is an investigational chronic LVAD that uses Full MagLev flow technology, a fully magnetically levitated technology foundation designed to lower adverse event rates while also enhancing the ease of surgical placement. The device is intended for a range of advanced heart failure patients and is in clinical trial for use as long-term support for patients who are not candidates for cardiac transplantation. It will also be evaluated for short-term support options for patients awaiting transplantation. The company just received CE mark approval in Europe. The Momentum 3 U.S. investigational device exemption trial is currently enrolling.

Headquartered in St. Paul, Minn., St. Jude Medical has four major clinical focus areas that include cardiac rhythm management, atrial fibrillation, cardiovascular and neuromodulation.