Volcano to Acquire Crux Biomedical

December 3, 2012—Volcano Corporation (San Diego, CA) announced that it has signed an agreement to acquire Crux Biomedical (Menlo Park, CA), which has developed an inferior vena cava filter system.

According to Volcano's press release, Crux Biomedical received CE Mark approval in December 2011 and 510(k) clearance in July 2012 for its Crux vena cava filter (VCF) system. The Crux VCF system features a helical design that self-centers and allows bidirectional retrieval through either the jugular or femoral vein. In the RETRIEVE 2, 3, and 4 pivotal clinical trials, which enrolled 125 patients at high risk for pulmonary embolism across 22 global sites, the Crux VCF system demonstrated both deployment and retrieval success rates of 98%, with 0% embolization, migration, and fracture rates.

Volcano stated that it expects to initiate commercial sale of Crux products at the end of 2013, once full-scale manufacturing is implemented at its facility in Rancho Cordova, California. Volcano also plans to seek regulatory approval to market the Crux VCF system in combination with its intravascular imaging technology.

The acquisition is expected to occur within the next week. Under terms of the agreement, Volcano will pay $36 million in cash at closing and up to approximately $3.1 million for Crux's transaction expenses. The merger agreement also provides for a potential postclosing cash milestone payment of $3 million upon US Food and Drug Administration clearance of a 510(k) application submitted by Volcano on or before June 30, 2013, for a retrieval device that is currently being developed by Crux. Volcano may make additional cash payments for up to 4 years based on sales of Crux products after their commercial launch, the company stated.