Acquisition accelerates expansion of St. Jude Medical's cardiovascular growth platform
ST. PAUL, Minn. & UPPSALA, Sweden--(BUSINESS WIRE)--Dec. 21, 2008--St. Jude Medical, Inc. (NYSE: STJ) and Radi Medical AB announced today
the completion of St. Jude Medical's acquisition of Radi Medical Systems
AB for $250 million in cash.
Radi Medical Systems is the world leader in two segments of the market
for cardiovascular medical devices in which St. Jude Medical does not
currently participate. For 2008, Radi Medical Systems is expected to
generate approximately $80 million in sales, a 19 percent increase over
2007.
Radi Medical Systems' pressure measurement guidewire, PressureWire(R)
Certus, comprises approximately a 70 percent share of the global market
for physiological assessment of coronary lesions. The product is
supported by a large and growing body of clinical evidence, including
the FAME ("Fractional Flow Reserve vs. Angiography for Multivessel
Evaluation") study. The results of the FAME study were presented at the
Transcatheter Cardiovascular Therapeutics conference in October 2008,
and can be viewed at www.famestudy.com.
The market for physiological assessment of coronary lesions totaled over
$60 million in 2008 and is projected to continue growing at a strong
double-digit rate.
Radi Medical Systems' FemoStop(R) and RadiStop(R) product lines comprise
approximately a 60 percent share of the global market for manual
compression-assist products for vascular closure. This market totaled
approximately $45 million in 2008 and is projected to continue to grow
at least at a mid single-digit rate. The FemoStop and RadiStop product
lines, together with St. Jude Medical's world-leading Angio-Seal(TM) line
of active vascular closure products, will be part of an expanded program
by St. Jude Medical to fully develop the potential of a global vascular
closure device market that is only about 27 percent penetrated.
"This acquisition will accelerate the expansion of St. Jude Medical's
cardiovascular growth platform and benefit the customers, employees and
shareholders of both companies," said Daniel J. Starks, chairman,
president and chief executive officer of St. Jude Medical. "We look
forward to capturing strategic synergies through this acquisition and
further expanding our investment in our cardiovascular division
technology, products and programs."
Thomas Engstrom, chief executive officer of Radi Medical Systems, said,
"We are pleased to join with the industry leader in active vascular
closure and a partner who shares our vision of developing innovative
cardiovascular technologies that improve patient care. This transaction
brings together complementary product lines and, through St. Jude
Medical's sales and distribution infrastructure, extends our reach to
even more physician customers for the benefit of the patients they help
everyday."
With this transaction, Radi Medical Systems will become part of the St.
Jude Medical Cardiovascular Division. The transaction is expected to be
neutral to St. Jude Medical's consolidated earnings per share in 2009
and is expected to be positive to consolidated earnings per share
beginning in 2010. St. Jude Medical funded the acquisition with cash on
hand outside the United States as well as with the proceeds from a new
three-year term loan established recently with a syndicate of banks.
In connection with the transaction, Banc of America Securities LLC acted
as financial advisor to St. Jude Medical, and Sidley Austin LLP and
Mannheimer Swartling Advokatbyra AB are serving as legal counsel to St.
Jude Medical and Katsky Korins LLP and Advokatfirmen Lindahl are serving
as legal counsel to Radi Medical AB.
About Radi Medical Systems
Radi Medical Systems develops, manufactures and sells medical devices
designed to improve patient care. The company's pioneering work in the
field of interventional cardiology has resulted in market-leading
intravascular sensors and hemostasis management devices. Radi Medical
Systems works closely with medical practitioners to develop solutions
that address clinical needs, as well as provide clinical education and
support. Founded in 1988, Radi Medical Systems employs approximately 380
people globally and has representation in more than 60 countries. The
company is based in Uppsala, Sweden. For more information, visit www.radi.se.
About FAME
The FAME study is the world's first randomized, prospective, multicenter
trial to compare clinical outcomes and the cost-effectiveness of
physiologic-guided percutaneous coronary interventions (PCI) to an
angiographic-guided PCI's in patients with multi vessel coronary artery
disease. Results from the FAME study were presented at the Transcatheter
Cardiovascular Therapeutics symposium in October 2008. Additional
information about the FAME study is available at www.famestudy.com.
About St. Jude Medical
St. Jude Medical develops medical technology and services that focus on
putting more control into the hands of those who treat cardiac,
neurological and chronic pain patients worldwide. The company is
dedicated to advancing the practice of medicine by reducing risk
wherever possible and contributing to successful outcomes for every
patient. Headquartered in St. Paul, Minn., St. Jude Medical employs more
than 13,000 people worldwide and has five major focus areas that
include: cardiac rhythm management, atrial fibrillation, cardiac
surgery, cardiology and neuromodulation. For more information, please
visit www.sjm.com.
St. Jude Medical Forward-Looking Statements
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that involve
risks and uncertainties. Such forward-looking statements include the
expectations, plans and prospects for the Company, including potential
clinical successes, and future product launches, and projected revenues,
margins, earnings and market shares. The statements made by the Company
are based upon management's current expectations and are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. These risks and uncertainties include market conditions and
other factors beyond the Company's control and the risk factors and
other cautionary statements described in the Company's filings with the
SEC, including those described in the Risk Factors and Cautionary
Statements sections of the Company's Annual Report on Form 10-K for the
fiscal year ended December 29, 2007 and Quarterly Report on Form 10-Q
for the fiscal quarter ended September 27, 2008. The Company does not
intend to update these statements and undertakes no duty to any person
to provide any such update under any circumstance.
CONTACT: St. Jude Medical
Angela Craig, 651-481-7789
Investor / Media Relations
or
Radi Medical Systems
Tobias Tullberg, 46 709 50 48 88
Director of Market Development
Source: St. Jude Medical, Inc.
