Spectranetics to be acquired by Royal Philips

Spectranetics, which makes balloons and catheters for peripheral and coronary intervention, announced that it has reached a definitive merger agreement with Royal Philips.

According to a press release issued by Spectranetics, Philips will be making a cash purchase of all issued and outstanding shares of Spectranetics for $38.50 per share upon the completion of the merger, which is 27% higher than Spectranetics’ closing price on June 27, 2017.

Spectranetics projects 2017 sales to be in the range of $293 million to $306 million, due in part to the CE-marked Stellarex drug-coated balloon, which treats common to complex peripheral artery lesions while inhibiting restenosis, according to the release. The DCB is under review by the FDA for approval in the U.S. market.

Other Spectranetics products include laser atherectomy catheters for treatment of coronary and peripheral lesions, and a scoring balloon (AngioSculpt) and drug-coated scoring balloon (AngioSculptX) to push aside blockages in coronary and peripheral arteries, according to the release.

“Combining Philips’ innovations in image-guided therapy with Spectranetics’ portfolio and expertise in the therapeutic device space will create exciting opportunities and allow us to accelerate growth,” Scott Drake, president and CEO of Spectranetics, said in the release. “We look forward to a smooth transition.”

According to the release, the acquisition is expected to further expand and strengthen Philips’ Image-Guided Therapy Business Group.

“Spectranetics’ highly competitive product range, integrated with our portfolio of interventional imaging systems, devices, software and services will enable clinicians to decide, guide, treat and confirm the appropriate cardiac and peripheral vascular treatment to deliver enhanced care for patients with better outcomes, as well as significantly boost recurring revenue streams for Philips,” Frans van Houten, CEO of Royal Philips, said in the release.