BARRX Medical, Inc. Announces Definitive Agreement to be Acquired by Covidien
SUNNYVALE, Calif., Nov. 21, 2011 /PRNewswire/ — BARRX Medical Inc., a leader in developing minimally invasive medical devices used in conjunction with endoscopy to remove precancerous tissue from the gastrointestinal tract, announces today that they have signed a definitive agreement to be acquired by Covidien. Covidien is a leading global provider of healthcare products and a worldwide leader in advanced energy-based devices.
Covidien will acquire all of the outstanding capital stock of BARRX, a private company, for approximately $325 million, with additional future earn out payments possible upon achievement of company milestones. The transaction, subject to customary closing conditions, is expected to be completed by January 31, 2012.
BARRX developed and markets the HALOFLEX ablation system, inclusive of a radiofrequency generator and numerous ablation catheters, HALO90, HALO90 ULTRA, and HALO360+. The HALO ablation catheters deliver RF energy to diseased tissue in the gastrointestinal tract resulting in a uniform and repeatable depth of ablation. Surgeons and gastroenterologists use the HALO devices during non-surgical endoscopic procedures to remove pre-cancerous and cancerous tissue from the gastrointestinal tract and to reduce bleeding associated with certain chronic disease states.
“We are extremely pleased that Covidien has elected to acquire BARRX, as this will allow us to continue our growth and avail our endoscopic therapy to patients with Barrett’s esophagus and esophageal squamous cell neoplasia on a worldwide basis,” said Greg Barrett, President and CEO, BARRX Medical. “Covidien is a global leader in multiple disciplines of surgery and the acquisition of BARRX will allow them to leverage their expertise and resources in the growing field of endoscopy and gastrointestinal disorders.”
“BARRX Medical products and technology complement our current portfolio of energy-based products and will broaden our presence in the global gastrointestinal market,” said Bryan Hanson, Group President, Surgical Solutions. “At the same time, patients will benefit from advances in RF technologies that will change the standard of care for esophageal diseases from invasive surgery to therapeutic intervention. Covidien offers advantages to BARRX Medical that support its mission in long-term growth and value to patients. We expect to leverage the BARRX technology and capabilities as a platform to accelerate global expansion.”
“In today’s healthcare environment, patients, physicians, payers and regulators demand that medical interventions be supported by a broad base of clinical evidence,” said David S. Utley, M.D., Chief Medical Officer, BARRX Medical. “A decade ago, BARRX recognized this need for an evidence-based approach for product and procedure development and, therefore, conducted a large number of clinical trials which have demonstrated the safety, efficacy, durability, and cost-utility of the HALO ablation system for treating Barrett’s esophagus and esophageal squamous cell neoplasia.”
About BARRX Medical, Inc.
BARRX Medical, Inc. develops endoscopic treatment solutions for Barrett’s esophagus and other gastroenterological diseases such as esophageal squamous cell neoplasia, bleeding associated with radiation proctopathy, and bleeding associated with gastric antral vascular ectasia. Barrett’s esophagus is a precancerous condition of the lining of the esophagus (swallowing tube) caused by gastroesophageal reflux disease, or GERD, and can lead to esophageal adenocarcinoma. Esophageal squamous cell neoplasia is the precursor to the most common type of esophageal cancer (squamous cell carcinoma), which results in over 400,000 deaths per year worldwide. The company’s HALO90, HALO90 ULTRA and HALO360+ ablation catheters, powered by the HALOFLEX ablation system, provide a uniform and controlled ablation effect, which removes diseased tissue and allows re-growth of normal cells.
Based in Sunnyvale, Calif., BARRX Medical, Inc. was founded in 2000 and is privately-held. Additional information is available at www.barrx.com.
SOURCE BARRX Medical, Inc.