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Philips Acquires InnerCool, San Diego Startup That’s Run Hot and Cold

Royal Philips (NYSE: PHG), the Dutch conglomerate, says today it has agreed to acquire the assets of InnerCool Therapies, a once-hot San Diego medical device startup, in a deal with an overall value of $12.75 million.

InnerCool was founded in 1998 and raised about $50 million from Kleiner Perkins Caufield and Byers, Credit Suisse First Boston, and other investors to develop medical technology that induces hypothermia. Then the venture went cold. InnerCool’s value was reset in 2006, when San Diego-based Cardium Therapeutics acquired the medical device company for about $6 million.

Philips describes the InnerCool deal as an asset purchase for $11.25 million. In addition, Philips agreed to the transfer of about $1.5 million in trade payables, which usually means bills owed for services or goods, but a spokesman said the company wouldnt elaborate.

In 2003, federal regulators approved InnerCool’s catheter-like device that allows doctors to cool blood going to the brain, which helps reduce the risk of brain damage in patients who have suffered a heart attack or aneurysm. The American Heart Association has recognized such “therapeutic hypothermia” as crucial in improving survival and neurological recovery among heart attack patients.

Philips says InnerCool will be integrated with its Clinical Care Systems business. The company, based in The Netherlands, already provides medical equipment used for comprehensive patient monitoring, defibrillation therapy, clinical decision support tools, and other medical consumables.

Philips, which might be better known for its lighting and electronics businesses, also operates a diversified health and lifestyle business. In a statement, Philips Healthcare CEO Steve Rusckowski says the InnerCool acquisition “will allow us to broaden our offering in emergency care now, and also enable us to provide leadership in promising future applications such as acute myocardial infarction and stroke, which could further preserve heart and brain tissue.”