ev3 to Acquire Chestnut Medical Technologies
June 2, 2009—ev3 Inc. (Plymouth, MN) announced that it has signed a definitive agreement to acquire Chestnut Medical Technologies, Inc. (Menlo Park, CA), a developer of minimally invasive therapies for interventional neuroradiology. With the transaction, ev3 will add Chestnut's Pipeline embolization device for the treatment of cerebral aneurysms and the Alligator retrieval device for foreign body retrieval to its existing embolic product and access technologies.
According to ev3, the Pipeline technology is a new class of embolization device that is designed to divert blood flow away from the aneurysm in order to provide a complete and durable aneurysm embolization while maintaining patency of the parent vessel. The Pipeline embolization device has received CE Mark approval in Europe, and Chestnut is currently conducting two clinical studies under US Food and Drug Administration investigational device exemptions to gain approval for the Pipeline in the United States.
"Large and giant, wide-neck, or nonsaccular aneurysms remain a significant unmet clinical need," commented interventional neuroradiologist Saruhan Cekirge, MD. "Early experience suggests that the Pipeline embolization device may represent a valuable alternative to current endovascular or surgical treatment options for these aneurysms, and that flow-diversion technology may account for as many as one-fourth of the treated aneurysm patient population over the next 5 years."
Under the terms of the agreement, ev3 will acquire 100% of the equity interests of Chestnut for total up front consideration of $75 million paid upon closing with additional milestone-based contingent payments upon the receipt of Food and Drug Administration premarket approval of the Pipeline device. The transaction is subject to customary closing conditions and is expected to close within approximately 45 days, the company stated.