Japanese firm buys US medical device manufacturer, taking particular interest in its development of drug-eluding stents for cardiology
Goodman, a Japanese company involved in the development, manufacture, and distribution of vascular interventional devices, announced it has signed a definitive agreement to acquire Avantec Vascular, a US manufacturer of medical devices.
The acquisition is expected to close by January 2003.
Avantec Vascular designs, manufactures and markets minimally invasive devices for use in interventional cardiology including the Apollo coronary dilation catheters and the Duraflex coronary stent system.
Stents are tiny, scaffold-like devices used to treat clogged arteries.
The Duraflex is currently awaiting approval in Japan, and has been independently shown to offer a combination of flexibility and radial strength superior to competitor products in the marketplace.
These products are currently being sold in over 20 countries through a network of strategic partners.
In addition, Avantec has an extensive drug-eluding stent programme and has initiated a clinical trial with the first of several such products in its pipeline.
Goodman says Avantec has an impressive portfolio of patents pending in the USA and other countries in the fields of stent design.
drug elution, coatings, and delivery systems, as well as other therapeutic areas including abdominal aortic aneurysms, peripheral vascular diseases, and neurovascular diseases.
Under the agreement, which is subject to customary closing conditions, Goodman will pay about $135 million (about 17.5 billion yen) in cash to buy the remaining 81.8% stake in Avantec that it does not already own, valuing the transaction at approximately US$165 million.
Avantec will become a wholly owned subsidiary of Goodman and will be included in its consolidated accounts.
"This acquisition has a number of compelling benefits for Goodman, both immediate and long term.
Goodman gains immediate access to a worldwide distribution network and current outstanding product offerings.
More importantly, Goodman becomes a player in the drug-eluding stent market, expected to grow $5-$8 billion in a few years, and considerably boosts its ability to participate in the global marketplace for substantial future growth," said Akira Yamamoto, president of Goodman.
Goodman currently participates solely in the Japanese market, which accounts for less than 10% of the procedures performed worldwide. "Drug-eluding stents are poised to have a major impact on the vascular device market.
Avantec has undertaken a very aggressive effort in this area, focusing on cytostatic drugs due to their elegant mechanism of action.
Goodman has been instrumental in the progress of Avantec.
This acquisition allows Avantec to expedite its entry into this exciting market segment,"said Motasim Sirhan, president and CEO of Avantec Vascular.
Recent studies have shown drug-eluding stents to reduce restenosis or reclogging of arteries from the current 20%-30% to single digit levels, which may revolutionise how cardiologists treat patients.
