NEW YORK (Reuters) - Medical device maker Medtronic Inc (MDT.N) said on Monday it has agreed to buy privately-held Ardian Inc — a developer of a hot, new catheter-based therapy to treat high blood pressure and related conditions — for an up front cash payment of $800 million.
The deal also calls for commercial milestones equal to the annual revenue growth of products using current Ardian technology through the end of Medtronic’s fiscal 2015, the companies said.
“We view renal denervation for the treatment of uncontrolled hypertension as one of the most exciting growth markets in medical devices,” Sean Salmon, vice president and general manager of the coronary and peripheral business at Medtronic, said in a statement.
Medtronic already owns an 11 percent stake in Ardian.
Data from a clinical study of Ardian’s flagship product, the Symplicity Catheter System, caused a stir last week at the annual American Heart Association scientific meeting.
In that study patients treated with the Ardian system saw their systolic blood pressure drop by an average of 33 points after six months compared with no change seen in patients on available medicines. The results were considered to be highly statistically significant.
The transaction is expected to close in Medtronic’s third fiscal quarter, or the quarter ending in January of 2011, the company said. Medtronic is expected to report its second quarter results on Tuesday.
Reporting by Bill Berkrot; Editing by Tim Dobbyn