Abbott announced an asset purchase agreement for the coronary and peripheral interventional business line of the Jomed group, a provider of minimally invasive vascular interventional devices. Jomed N.V., the parent company, is incorporated in the Netherlands. The intravascular ultrasound technology, functional measurement, cardiac surgery businesses, and associated companies of Jomed N.V. and its subsidiaries are not a part of this transaction.
Under the terms of the agreement, wholly-owned subsidiaries of Abbott intend to purchase the assets and assume certain normal operating liabilities of the coronary and peripheral interventional business from Jomed N.V. and its subsidiaries for a cash purchase price of €60 million. The purchase agreement covers products, intellectual property, equipment, facilities and employees associated with the business line. This transaction will not have an impact on the results of Abbott's 2003 ongoing operations, but will result in a one-time charge primarily for in-process research and development. Additional financial terms of the agreement were not disclosed. The transaction is expected to be completed in the second quarter of 2003. The completion of the transaction is subject to certain conditions, including governmental approvals.
Through the agreement, Abbott will gain access to Jomed's broad line of interventional cardiology and peripheral devices, which include stents, stent grafts, balloon devices, and guiding and diagnostic catheters. These vascular products are used in the treatment of arterial obstructions in the coronary arteries, lower extremities, kidneys and carotid arteries. The addition of these products, which Jomed markets primarily in Europe and Asia, will further build upon Abbott Vascular Devices' product portfolio. Abbott currently markets complementary products in the vessel closure, coronary stent and embolic protection segments.
"This asset purchase is an excellent fit with our strategy to build an expansive portfolio of vascular products," said Robert B. Hance, vice president, Vascular Devices, hospital products, Abbott Laboratories. "Specifically, this will enhance Abbott's global research and development, manufacturing and commercial capabilities in the cardiovascular devices arena."
Abbott Vascular Devices will gain an experienced and dedicated sales force to market its current and future products as well as a more substantial presence to enhance its international infrastructure. The coronary and peripheral interventional business line has strong relationships with clinicians and institutions in more than 20 countries that will further enable Abbott to provide patients and customers outside the United States with innovative vascular products.
The addition of Jomed's stent graft, balloon and catheter devices adds new technologies to Abbott's vascular product offerings. Stent grafts are used in acute situations such as perforations or ruptures within a vessel. Balloons and catheters are used in interventional procedures, such as angioplasty, to treat both coronary and peripheral artery diseases. Catheters are used for the delivery of balloons or stents to diseased blood vessels and in angiography procedures.