) revealed that it has acquired Berlin, Germany-based medical
device maker Entwicklungsgesellschaft mbH or ECP. The acquisition
is in line with its strategy to provide percutaneous hemodynamic
support for minimally invasive procedures for complex treatment.
ECP produces a percutaneous expandable catheter pump which enhances
blood circulation from the heart with an external drive shaft. The
pump has a flow rate of up to 4.5 liters/minute, and an insertion
radius for the impeller and catheter of less than 10 French.
ECP carries patents or patent applications in over 40 patent
families, which will expire in 2033. These patents will be added to
ABIOMED's roughly 100 patents and patent applications from the
Impella device, which is the company's flagship product for
patients in need of hemodynamic support.
As a result, the acquisition will solidify ABIOMED's position in
intellectual property for axial and expandable pump capabilities.
ABIOMED has acquired all outstanding shares of ECP from Syscore
GmbH for a payment of roughly $13 million in cash, with potential
long-term payments of $7 million for CE Marking approval and $8
million for achieving global revenues of $125 million for products
using ECP patents.
Through the ECP acquisition, ABIOMED also acquired Aachen,
Germany-based AIS GmbH Aachen Innovative Solutions for about $2.75
million. AIS owns certain IP rights related to ECP's development
ABIOMED's headquarters in Aachen, Germany will control the ECP
facility in Berlin and its employees. Over time, ABIOMED plans to
integrate ECP technology into its existing Impella platform. The
company is looking forward to incorporate ECP capabilities into a
smaller insertion device with a reusable drive shaft, as a
standalone low-cost product.
A few weeks back, ABIOMED reported the implantation of over 20,000
Impella heart pumps in the U.S. Till date, the higher flow Impella
CP has been implanted in over 3,000 U.S. patients, with the 3,000th
procedure being carried out at the Hoag Memorial Hospital
ABIOMED's Impella heart pump is a percutaneous pump that can be
planted into the heart via the femoral artery in the thigh without
the need for a surgical procedure. It enables surgeons to treat
ventricular dysfunction through minimal invasion.
The Impella platform consists of the Impella 2.5, Impella CP and
Impella 5.0 heart pumps, all of which have secured U.S. Food &
Drug Administration (FDA) clearance for partial to full circulatory
support for up to six hours.
The addition of the Impella RP (Right Peripheral) completes the
Impella platform and allows it to offer a full range of hemodynamic
procedures. Impella RP is currently the subject of an
investigational device exemption (IDE) clinical study and is solely
limited to investigational use by the federal law.
ABIOMED recently secured CE Mark approval for Impella RP in the EU,
following which it anticipates the FDA go-ahead for this novel
product in early 2015.
Currently, ABIOMED carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the medtech industry are
Navidea Biopharmaceuticals, Inc
Wright Medical Group Inc.
). All of them retain a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
WRIGHT MEDICAL (WMGI): Free Stock Analysis
HOLOGIC INC (HOLX): Free Stock Analysis Report
ABIOMED INC (ABMD): Free Stock Analysis Report
NAVIDEA BIOPHAR (NAVB): Free Stock Analysis
To read this article on Zacks.com click here.