Volcano will pay up to $130 million to acquire AtheroMed, giving Volcano access to a recently FDA-approved treatment for peripheral artery disease (PAD).
In January, AtheroMed received FDA clearance for its Phoenix Atherectomy System, a low-profile primary therapy for treating PAD. The technology uses an over-the wire system with a rotating, front-cutting element at the distal tip of a catheter that shaves diseased material into the catheter. The debulked material is continuously removed through an internal mechanism.
San Diego-based Volcano announced that it will pay $115 million in cash and an additional $15 million contingent on FDA approval of another Phoenix device before Nov. 15, 2014. Volcano is targeting the end of 2014 for a limited market release of Phoenix and a full market release in early 2015.
Manufacturing will shift from AtheroMed’s site in Menlo Park, Calif., to Volcano’s facility in Costa Rica in late 2015.
The acquisition is expected to be completed this quarter.