End of the Line for Jomed?

Originally Published MX July/August 2003

BUSINESS NEWS

In a move described as part of a "strategy to build an expansive portfolio of vascular products," Abbott Laboratories (Abbott Park, IL) has acquired the coronary and peripheral intervention lines of Jomed (Ulestraten, The Netherlands) for ¤60 million in cash, plus assumption of certain liabilities which are described as "in excess of ¤20 million."

A company news release noted that the purchase agreement covers "products, intellectual property, equipment, facilities, and employees associated with the business line." However, other products, divisions, and subsidiaries of parent company Jomed N.V. were not part of the transaction.

Jomed got off to a great start in 2003, and was widely hailed as Europe's leading manufacturer of minimally invasive vascular intervention products. However, things quickly went downhill following the announcement of financial irregularities, which resulted in the dismissal of top executives and reauditing of the firm's 2001 and 2002 financial statements. In early May, the company was declared bankrupt by the Amsterdam District Court.