St. Jude Medical Buys Med-Tech Firm NeuroTherm For $200M
Little Canada-based St. Jude Medical announced Monday that it plans to acquire a fellow medical device manufacturer for about $200 million.
St. Jude said that acquiring Massachusetts-based NeuroTherm will mark its entry into the treatment of chronic spinal pain.
NeuroTherm treats spinal pain by using radiofrequency ablation, which it describes as a minimally invasive procedure that reduces back pain through the pinpoint application of heat to destroy painful nerves.
“NeuroTherm’s radiofrequency ablation products are an ideal complement to St. Jude Medical’s chronic pain portfolio, providing our global sales force with additional interventional pain therapies that offer potential relief to patients earlier in the chronic pain continuum,” St. Jude Chief Operating Officer Michael Rousseau said in a statement. “As the only medical device manufacturer with both RFA [radiofrequency ablation] and spinal cord stimulation, this acquisition will enable us to offer more treatment options to patients worldwide who suffer from the debilitating effects of chronic pain.”
The companies expect to complete the deal by the end of the third quarter of this year. St. Jude said the acquisition will add between $10 million and $15 million to its 2014 sales. St. Jude Medical employs about 16,000 people around the globe. The company generated $5.5 billion in revenue in 2013, which was about the same as the year before.
When asked if the deal would result in any employee transitions at either company or the possible rebranding of NeuroTherm, a St. Jude spokeswoman said the company won’t comment on integration plans until the transaction is closed.
“St. Jude Medical’s global leadership in chronic pain represents an excellent opportunity to bring NeuroTherm’s RF [radiofrequency] ablation technologies to more pain specialists and patients,” NeuroTherm CEO Christopher von Jako said in a statement. “We see a promising future with St. Jude Medical that combines our products with a leading pain franchise and further develops the underpenetrated global market for chronic pain.”