Why Abbott Shelled Out $310 Million for IDEV

Abbott Lab's vascular products represent an important part of the company's business, but the company's traditional stent portfolio has been less than stellar recently. That may change in the future as the company is working to stay on the cutting-edge of technology and has emerged as an innovator in the bioresorbable stent space, for instance. The company is also setting its sights on a new target: metal-based stents that differ dramatically from conventional stents produced from thin tubes. The company recently acquired stent technology developed by IDEV Technologies Inc. (Webster, TX), which is made using a braided-wire manufacturing technique. As a result, the stent is able to offer both high strength with flexibility. The latter characteristic enables the stent to be used in arteries that are subject to substantial flexion, such as in the superficial femoral artery in the thigh or the proximal popliteal artery, which gives blood to the knee joint and leg muscles.

Recently, Abbott closed a deal to acquire the company for $310 million as they see a bright future for IDEV's Super Veritas stent, which has passed regulatory muster in Europe for treating blood vessels blocked by peripheral artery disease. The company is undergoing pre-market approval review in the United States, where the device is now cleared only for the treatment of biliary strictures.

With the conventional stent market having matured, the treatment of peripheral artery disease may be a significant opportunity for Abbott. There are, according to the Lancet, 200 million people internationally with PAD, which is frequently treated with medication. "Peripheral artery disease is a significant and growing health concern around the world, raising the need for new and effective treatment options," explained Chuck Foltz, senior vice president, vascular, Abbott in a statement.

The Supera may be such a new effective treatment option. A recent clinical study found that primary patency in a clinical trial involving the Supera was 87.7% at 12 months. The stent's proprietary design makes use of nitinol, but unlike currently available self-expanding nitinol stents, the Supera Veritas offers sufficient strength to support blood flow while simultaneously providing flexibility and resistance to kinking fracturing. According to the company, the Supera is the first in a new line of stents dubbed vascular mimetic stents.

In an interview with MPMN last year, IDEV's president and CEO explained how the stent is developed: