Stryker announced a definitive agreement to acquire privately held Concentric Medical in an all cash transaction for US$135 million. Founded in 1999 Concentric develops, manufactures and markets minimally invasive products for the treatment of acute ischaemic stroke. The company has an FDA IDE clinical trial underway in the USA for its Trevo Retriever, a next generation clot removal product with Stentriever technology.
With projected sales in 2011 estimated to be over US$30 million, the acquisition of Concentric provides Stryker immediate access into the acute ischaemic stroke market segment in the USA, Europe and Japan. Also, it brings Concentric, the leading team in acute ischaemic stroke, together with Stryker Neurovascular’s leading team in haemorrhagic stroke, to provide complete interventional stroke care for customers and patients around the world.
“Stryker is committed to advancing care within the interventional neurovascular space. The acquisition of Concentric Medical and its leadership team provides us with the opportunity to leverage our global distribution capabilities and help bring innovative treatment options to the large and underserved ischaemic stroke population,” said Stephen P MacMillan, chairman, president and CEO of Stryker.
The transaction is subject to customary closing conditions. Upon closing, the transaction is expected to be neutral to Stryker’s 2011 earnings per share. The transaction is expected to close early in the fourth quarter of 2011.