Medtronic Acquires Neurosurgery Firm Visualase

On the heels of announcing its plans to acquire Covidien, Medtronic has expanded its neurosurgery footprint, completing its possibly $105 million acquisition of Visualase Inc. (Houston, TX).Previously a privately held company, Visualase develops and markets an FDA-approved MRI-guided system for minimally invasive neurosurgeries, including surgical thermal ablation for brain tumors and epilepsy.Medtronic said in a press release that it plans to incorporate the technology into its broader neuroscience offerings.Visualase directs light energy through a laser probe to heat and destroy soft tissue such as tumors and brain lesions, some deemed otherwise inoperable. MRI imaging provides precise targeting for the procedures, according to the company's website. Patients can be awake for the procedure, which may cause little or no pain and require only a one-day hospital stay.Medtronic had previously invested in Visualase and held an ownership stake in the company before completing the acquisition. The all-cash transaction includes an initial payment of $70 million plus additional payments of up to $35 million, which are contingent upon the achievement of specific milestones. Medtronic expects no net impact from the transaction to its fiscal year 2015 earnings. It predicted the acquisition would add value, consistent with its focus on long-term returns. Children's Hospitals and Clinics of Minnesota in May performed the first known Visualase surgery on an eight-year-old boy who had a rare, mature, teratoma brain tumor.The peach-sized tumor shank more than 40% following the treatment,said Dr. Joseph Petronio, medical director of pediatric neurosurgery at Children's, who performed the surgery. The treatment appeared to have destroyed the previously active part of the tumor, Petronio said.Doctors are currently using Visualase in the brain, liver, prostate, bone and spine, and are studying other applications in the thyroid and other thermal tumor ablation, according to the Visualase website.

Nancy Crotti is a contributor to Qmed and MPMN.

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