(By Balaseshan) Volcano Corp. (NASDAQ: VOLC) said it has agreed to buy privately-held Crux Biomedical, which has developed a highly differentiated inferior vena cava (IVC) filter—the Crux VCF System—to treat pulmonary embolisms (PE's).
Under terms of the agreement, Volcano will pay $36.0 million in cash at closing, which is expected to occur within the next week. Volcano will also pay up to about $3.1 million in Crux transaction expenses.
Founded in 2004 and based in Menlo Park, California, Crux has received a CE Mark in December 2011 and 510(k) clearance in July 2012 for its Crux VCF System, an innovative IVC filter designed to facilitate bi-directional retrieval through either the femoral or jugular veins.
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The merger agreement also provides for a potential post-closing cash milestone payment of $3.0 million upon FDA clearance of a 510(k) application submitted by Volcano on or before June 30, 2013, for a retrieval device currently being developed by Crux.
In addition, Volcano may 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, California, facility. The company also plans to seek regulatory approval to market the Crux VCF System in combination with its IVUS (Intravascular Imaging) technology.
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Pulmonary Embolism, which is caused by a migration of a large blood clot from the deep veins of the legs, affects 600,000 patients in the U.S. every year and results in an estimated 200,000 deaths annually.
IVC filters, particularly those which can be retrieved, are an important tool in reducing PE risk for patients in whom anticoagulation is contraindicated or ineffective. The IVC filter market in the U.S. is estimated at about $300 million. The Crux VCF System device has a unique helical design that self-centers and allows bi-directional retrieval through either the jugular or femoral vein.
In the RETRIEVE 2, 3 and 4 pivotal clinical trials, which enrolled 125 patients at high risk for PE across 22 global sites, the Crux VCF System demonstrated both deployment and retrieval success at 98% with 0% embolization, migration and fracture.
VOLC closed Friday's regular session at $27.26. The stock has been trading between $21.38 and $30.59 for the past 52 weeks.