Medtronic to Acquire Restore MedicalMedtronic to Acquire Restore Medical
Medtronic announced that it will pay $1.60 per share, or about $29 million, to buyÂ Restore Medical, a former MD&DI Medical Manufacturer of the Year. Restore makes a treatment for mild and moderate sleep apnea called the Pillar Procedure. It treats the fluttering of the soft palate, which is the cause of some cases of sleep apnea.
April 23, 2008
Three small implants made of polyethylene terephthalate yarns are inserted into the roof of the mouth to stiffen the soft palate.Restore will be incorporated into Medtronic's ENT business. âEURoeMedtronic can quickly leverage its distribution and marketing strengths to improve patient and surgeon access to this minimally invasive therapy," said Bob Blankemeyer, president of the ENT business at Medtronic.The Pillar Procedure had not caught on as much as it deserved to, and Restore had gone into debt because of that. With Medtronic's marketing muscle now behind it, the technology's fortunes should vastly improve, and more patients should benefit.UPDATE: Medtronic has completed the purchase and cut 37 jobs. Many of Restore's other employees had already resigned. Medtronic will keep the sales force, and have a few others stay on temporarily as consultants. Those whose jobs are getting cut will be offered severance packages.
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