Edwards Lifesciences Corp (NYSE:EW) announced that it is acquiring CardiAQ Valve Technologies for up to $400 million to strengthen its range of less-invasive mitral valve replacement devices.
CardiAQ Valve is engage in designing technologies for percutaneous mitral heart valve replacement. The transaction came about a couple of months after Edwards ended enrolling patients for a trial of its experimental mitral valve, Fortis. CardiAQ will receive $350 million in cash from Edwards and the remaining amount will be given on accomplishments of certain regulatory landmarks. Back in 2011, Edwards introduced a catheter-based aortic valve replacement device in America and now it is making efforts to utilize the technology for mitral valves.
The U.S. Food and Drug Administration has given Investigational Device Exemption authorization to CardiAQ to run an early viability study of up to 20 patients. The company is also looking forward to start a CE Mark trial in Europe.
Chief executive officer at CardiAQ, Rob Michiels said that the company is delighted with its pioneering attempts in the initial development of this transcatheter mitral valve treatment conceived by Dr. Arshad Quadri, a cardiac surgeon. CardiAQ believed its technology that includes a number of delivery styles with a single valve displays great commitment for patients.
Co-founder, President and COO at CardiAQ, J. Brent Ratz said that the company is looking forward to partner Edwards that will help it to advance its work as Edwards is experienced in developing breakthrough treatments for heart valve disorders.
Edwards recently finished its review regarding FORTIS program and reported that it will resume the enrollment for the study. The company said that the deal will be slightly dilutive to profit for the current fiscal year. The transaction is subject to usual closing conditions. EW will offer updated financial outlook for 2015 when it will post Q2 earnings on 28th of July.
