San Diego’s Volcano Paying $36M+ for Menlo Park’s Crux Biomed
San Diego vascular device maker Volcano Corp. (NASDAQ: VOLC) today disclosed an agreement to pay at least $36 million for Menlo Park, CA-based Crux Biomedical. The Crux deal comes just a few weeks after Volcano said it was acquiring Israeli imaging software developer Sync-Rx for $17.3 million.
Volcano specializes in devices that improve the diagnosis and treatment of coronary and peripheral vascular disease. The company says privately held Crux won clearance in the U.S. earlier this year and in Europe last year for its innovative inferior vena cava (IVC) filter, used to treat pulmonary embolisms—a type of blockage typically caused by a blood clot that has broken free. Volcano says such embolisms affect 600,000 U.S. patients every year, with an estimated 200,000 deaths annually.
In its statement today, Volcano describes IVC filters as an extra tool for reducing the risk among cardiovascular patients who are not suitable for anticoagulant drugs. Crux, founded in 2004, designed its IVC filter so the device can be retrieved.
The Crux acquisition would add a new tool to Volcano’s portfolio. Volcano’s intravascular imaging technology uses catheters and guide wires inserted inside a blood vessel to help doctors detect and treat blockages.
Under terms of the agreement, Volcano agreed to pay $36 million in cash at the closing, which is expected to take place within the next week. Volcano said it will pay Crux an additional $3 million milestone payment if the FDA clears another Crux-designed retrieval device by June 30. Volcano also agreed to pay as much as $3.1 million in Crux transaction expenses. What’s more, Volcano agreed to make additional cash payments for up to four years, based on sales of Crux products following their commercial launch.
Volcano expects to initiate commercial sales of Crux products at the end of 2013 once full-scale manufacturing is implemented at its Rancho Cordova, CA, plant.
The company said on Nov. 23 that Sync-Rx’s technology would help clinical decision-making by providing angiography and intra-body image enhancement, measurements, and non-invasive imaging. Volcano plans to integrate the visualization technology with its other tools.