News

St. Jude Medical Buys Leadless Pacemaker Developer Nanostim For $123.5M


Posted in Implantable Devices by Arundhati Parmar on October 14, 2013

Nanostim's Leadless Pacemaker

Moving on its previously-announced option from May, St. Jude Medical said Monday that it is acquiring the maker of the world's first leadless pacemaker.

The Minnesota device maker said it is buying Nanostim for $123.5 million plus up to $65 million in revenue-based milestones.

That revenue should be trickling in given that St. Jude also announced that Nanostim's pacemaker has won regulatory clearance in Europe.

At less than 10% the size of convention pacemakers, and implanted using a steerable catheter in a minimally invasive fashion, Nanostim's leadless pacemaker has the potential to change how pacemakers deliver therapy forever. Cardiac pacemakers are implanted in patients who suffer from a heart that beats too slowly.

Conventional pacemakers need extensive surgery on a patient in order to create room in the chest to implant not only the device but also the leads. And those leads have had a spotty history, and are widely regarded as the weakest link in pacemaker technology.

“The Nanostim leadless pacemaker represents one of the most important advances in the history of pacing technology, and builds on St. Jude Medical’s strong history of pacing innovation – beginning with the first implantable pacemaker in 1958 through the introduction of quadripolar cardiac resynchronization therapy pacing,” said Eric S. Fain , M.D., president of the St. Jude Medical Implantable Electronic Systems Division, in a St. Jude news release. 

The acquisition is also meant to reverse St. Jude's performance in its pacemaker business. 

Meanwhile, at least one Wall Street investment bank has viewed this announcement favorably. Cowen upgraded its rating on St. Jude Medical's stock to "Outperform" or "Buy" from "Market Perform" or "Hold."

Innovations in implantable devices is a topic of discussion at the Medical Device Design & Manufacturing Conference, hosted by the publisher of MD+DI, in Minneapolis, Oct.28-30.

 -- By Arundhati Parmar, Senior Editor, MD+DI
arundhati.parmar@ubm.com
 

 


Tags:
Printer-friendly version
Your rating: None Average: 4 (1 vote)

Login to post comments