(By Balachander) Covidien Plc (NYSE: COV), a developer of healthcare products, has agreed to acquire privately-held CV Ingenuity for an undisclosed sum.
Fremont, California-based CV Ingenuity is engaged in improving patient outcomes in the treatment of peripheral arterial disease (PAD) by providing services to relieve vascular obstructions, inhibit restenosis, and allow natural vessel healing.
CV Ingenuity's core technology, while still in the investigational phase, is a Drug Coated Balloon (DCB) platform with a novel, proprietary, tunable, rapid-release system.
Ireland-based Covidien, with revenue of $11.9 billion in 2012, said it does not expect approval from the U.S. Food and Drug Administration (FDA) for a DCB product using the CV Ingenuity technology until fiscal 2017.
As a result of the deal, Covidien expects additional expenses to be more than $20 million in the second half of fiscal 2013 and more than $30 million in fiscal 2014.
"CV Ingenuity offers a robust DCB portfolio, and offering a DCB technology is something that we believe is necessary to continue to improve care for patients suffering from PAD, as well as ensuring we are a full line partner with our customers today and into the future," said Stacy Enxing Seng, President, Vascular Therapies, Covidien.
The companies expect to close the deal in the first calendar quarter of 2013.
COV shares, which have been trading in the 52-week range of $44.52 to $60.81, ended at $57.18 on Monday.