Medtronic to Acquire Twelve, Inc., Developer of Transcatheter Mitral Valve Replacement Device
25 August 2015 - 11:00PM
DUBLIN - August 25, 2015 - In
support of the company's therapy innovation strategy, Medtronic plc
(NYSE: MDT) today announced that it has signed a definitive
agreement to acquire Twelve, Inc. ("Twelve"), a privately-held
medical device company based in Redwood City, Calif., focused on
the development of a transcatheter mitral valve replacement (TMVR)
device. Twelve is the twelfth company spun out from the premier
medical device incubator The Foundry.
"Upon close, this acquisition will strategically
augment our existing capabilities in the transcatheter mitral
space, which represents an important growth opportunity for
Medtronic," said Sean Salmon, senior vice president and president,
Coronary & Structural Heart, Medtronic. "We have followed the
transcatheter mitral valve space closely and firmly believe that
Twelve has the most novel technology along with a strong, proven
team. The combined strengths of our organizations will
significantly accelerate our ability to deliver an exciting and
differentiated therapy to patients, physicians and healthcare
systems around the world."
Mitral regurgitation occurs when the heart's
mitral valve fails to close normally, allowing blood to flow
backward when the heart contracts. Over time, this will lead to
declining heart function and heart failure. The TMVR device under
development is being designed to treat patients with mitral valve
regurgitation in whom standard restorative surgery is not
recommended. The majority of these patients are largely underserved
with limited treatment options.
"Twelve's technology is a truly creative solution
that brings together valve technology with a unique and highly
differentiated dual-stent fixation design," said Andrew Cleeland,
president and CEO, Twelve. "Our acquisition by Medtronic will
create a tremendous opportunity to leverage Medtronic's expertise
and proven success in the structural heart space to advance the
treatment of mitral regurgitation."
Medtronic has agreed to pay up to $458 million for
Twelve including $408 million at closing and $50 million on
achievement of CE Marking. The cash- and debt-free transaction
remains subject to customary closing conditions, and is expected to
close in October 2015. The transaction is expected to meet
Medtronic's long-term financial metrics. Medtronic expects the net
impact from this transaction to be earnings neutral as the company
intends to offset the dilutive impact of the transaction. Medtronic
will manage the Twelve product line as part of the Coronary &
Structural Heart division within the Cardiac and Vascular
Group.
"We are keenly focused on improving patient
outcomes and expanding access to care for those who need it most,"
added Sean Salmon. "We believe this acquisition will help deliver
on this commitment by enabling Medtronic to bring forward a
best-in-class transcatheter mitral valve replacement device with
the potential to transform patient care."
In collaboration with leading clinicians,
researchers and scientists worldwide, Medtronic offers the broadest
range of innovative medical technology for the interventional and
surgical treatment of cardiovascular disease and cardiac
arrhythmias. The company strives to offer products and services
that deliver clinical and economic value to healthcare consumers
and providers around the world.
The Twelve, Inc., TMVR device is not for sale in
any country.
ABOUT MEDTRONIC
Medtronic plc (www.medtronic.com), headquartered in Dublin,
Ireland, is the global leader in medical technology - alleviating
pain, restoring health and extending life for millions of people
around the world.
ABOUT TWELVE
Twelve, Inc. is a privately held medical device company based in
Redwood City, Calif., focused on the development of a transcatheter
mitral valve replacement (TMVR) device. It is the twelfth company
spun out from the premier medical device incubator The Foundry.
Twelve is supported by leading healthcare investors Domain
Associates, Versant Ventures, Morgenthaler Ventures, Longitude
Capital, Emergent Medical Partners, Vertex Venture Management, and
Capital Group.
This press release contains
forward-looking statements that may include statements regarding
the intent, belief or current expectations of Medtronic, Twelve,
and their respective management. Forward looking statements include
statements about the benefits and advantages of the acquisition for
Medtronic and Twelve. Actual results could differ materially from
those projected in the forward-looking statements as a result of a
number of important factors, including but not limited to the risk
that the acquisition will not close as the transaction is subject
to certain closing conditions, such as the ability to obtain
regulatory approvals of the proposed acquisition. In addition, if
and when the transaction is closed, there will be risks and
uncertainties related to Medtronic's ability to integrate Twelve
successfully, the risk that the cost savings and any other
synergies from the acquisition may not be fully realized or may
take longer to realize than expected; disruption from the
acquisition making it more difficult to maintain relationships with
customers, employees or suppliers; and competition and its effect
on pricing, spending, third-party relationships and revenues.
Additional factors that may affect future results are contained in
Medtronic's periodic reports on file with the Securities and
Exchange Commission. Medtronic and Twelve each disclaim any
obligation to update and revise statements contained in this
release based on new information or otherwise.
-end-
Contacts:
Wendy Dougherty
Public Relations
+1-763-381-1204
Ryan Weispfenning
Investor Relations
+1-763-505-4626
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Medtronic plc via Globenewswire
HUG#1947310
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