Ev3 Inc. has acquired a privately held California company that is developing a new way to treat potentially deadly brain aneurysms.
Ev3 will pay $75 million upfront in the cash and stock deal, with an additional milestone payment of up to $75 million due when Chestnut Medical Technologies Inc. gets federal regulatory approval for its device. The milestone payment is not expected until 2011, Ev3 says.
An aneurysm is a bulge that develops in an artery; if it ruptures in the brain, internal bleeding may cause a stroke or death. Chestnut is developing a minimally invasive technology called Pipeline to divert blood away from an aneurysm in a procedure to treat the condition.
It is estimated that one in 15 people in the United States will develop a brain aneurysm, and Ev3 says it believes the global market for diversion devices like Pipeline will be $350 million by 2013.
Part of Ev3's medical device portfolio includes devices to treat neurovascular diseases and disorders.
Chestnut's Pipeline device is approved for sale in Europe. The company is conducting two clinical trials to gain Food and Drug Administration approval for use in the United States.
Ev3 said the deal is expected to close within 45 days.
Get curated news on YOUR industry.
Enter your email to receive our newsletters.
Latest from Today's Medical Developments
- HydroPlasma: The future of surface cleaning in high-tech industries
- Heule partners with Center for Machining Excellence
- Down the road: What really is next for electric vehicles?
- Driving successful medtech innovation
- Last call for July’s medical manufacturing Lunch + Learn!
- Transform What’s Possible with the Okuma MULTUS U3000
- Okuma: Extraordinary Starts Where Limits End
- Are new medical procedures patentable?