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LivaNova picks up remaining stake in ImThera Medical
Posted on Tuesday, 05 December 2017 14:05
London-headquartered LivaNova is acquiring the remaining outstanding interests of obstructive sleep apnea (OSA) treatment implantable neurostimulation device developer ImThera for USD 78.00 million.

Further earn-out payments of up to USD 147.00 million could be paid if regulatory and sales milestones are reached in the future.

The deal is expected to increase the buyer’s earnings soon after completion, which is anticipated in early 2018.

LivaNova chief executive Damien McDonald said it was aiming to expand the target’s “current commercial presence in the European market, while advancing enrolment in a US Food and Drug Administration pivotal trial”.

Founded by Marcelo Lima in 2008, San Diego-based ImThera develops treatments for moderate to severe OSA, a condition which causes the muscles in the airway to relax during sleep and possibly deprive the brain of oxygen.

Its targeted hypoglossal neurostimulation sleep therapy is touted as an alternative to traditional treatment, namely continuous positive airway pressure; the aura6000 implant system stimulates the tongue during sleep to control upper airway flow, thereby reducing or eliminating sleep apnea events.

According to McDonald, the device will be added to LivaNova’s portfolio and “is highly aligned with our existing neuromodulation business”.

The British cardiac surgery and treatment electro-medical devices manufacturer currently employs over 4,500 people in more than 100 countries and originally invested in ImThera in 2011.

For the three months ending 30th September 2017, it reported adjusted net income of USD 45.10 million, up from the USD 38.30 million posted for the same quarter last year.

This improvement can be attributed to an increase in net sales, which reached USD 309.70 million in the period (Q3 2016: USD 295.30 million) and high demand for the company’s KORA250 device in Japan.

LivaNova is organised into three businesses: cardiac surgery, based in Italy; French unit CRM, the sale of which to MicroPort was announced last month; and the aforementioned Houston, US-headquartered neuromodulation division.

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