Medtronic confirms Ventor acquisition

Ventor was founded 5 years ago, and the $325 million sum is impressive given the age of the company.

Medical device giant Medtronic (NYSE: MDT) has confirmed that it will buy Israeli heart-valve developer Ventor for $325 million.

The deal was finalized at a Medtronic meeting on Friday.

Sources at Ventor, and Medtronic spokespeople, had previously refused to confirm the story about the deal that was reported in "Globes" last week. There were even rumors of the deal's collapse, but in the end it took place as planned.

Talks lasted for over six months, and in that time, Medtronic invested $10 million in Ventor.

Ventor was founded 5 years ago, and the sum is impressive given the age of the company.

Medtronic did surprise in reporting at the same time that it was buying a second heart device maker, CoreValve, for $700 million plus milestone payments. The two acquisitions make Medtronic the leader in the field of replacing aortic valves without open heart surgery.

Medtronic said that currently, patients with aortic stenosis face open-heart valve surgery, but that many patients are ineligible for surgery because of their deteriorating health. Aortic stenosis is a condition in which the aortic valve becomes narrower and impedes blood flow. Ventor's transcatheter valves technologies offer a non-surgical alternative for patients who need their valve replaced but may not be good surgical candidates. CoreValve makes a similar product, which also addresses aortic stenosis.

Published by Globes [online], Israel business news - www.globes-online.com - on February 23, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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