Medtronic has announced that it has entered into a definitive agreement to acquire EPIX Therapeutics. When completed, the EPIX acquisition will expand the Medtronic cardiac ablation portfolio.
The DiamondTemp (TM) ablation system (EPIX) provides physicians with improved feedback and control during an ablation procedure. The DiamondTemp system uses radiofrequency (RF) energy (heat) to create scar tissue in the heart and complements the Medtronic cryoballoon technology that uses cryo energy (cold) to isolate the pulmonary veins (PVI).
The DiamondTemp system received CE Mark in Europe in 2017 and is limited to investigational use in the USA. The DIAMOND-AF trial, which completed enrolment in October 2018, will support approval of the DiamondTemp system in the USA for patients with symptomatic paroxysmal AF (AF that starts and stops intermittently). Additionally, the DIAMOND-AF II trial, which is currently enrolling patients, is evaluating the DiamondTemp system in patients with persistent AF (AF that continues for long periods of time).
The EPIX acquisition is expected to close in Medtronic’s fourth fiscal quarter, which runs 26 January to 26 April, 2019, subject to the satisfaction of certain customary closing conditions. EPIX is currently pre-revenue, and although the acquisition is expected to be dilutive to Medtronic’s near-term adjusted earnings per share, Medtronic intends to offset the dilution. The transaction is expected to meet Medtronic’s long-term financial metrics for acquisitions. Additional terms of the transaction were not disclosed.
