Abbott has signed a definitive agreement to acquire the outstanding equity of Evalve, a device developer for minimally invasive repair of cardiac mitral valves.
The Abbott Park, Ill.-based company said the acquisition provides it with a presence in the area of non-surgical treatment for structural heart disease, in which physicians use catheter-based devices to repair or replace basic structural components of the heart such as mitral and aortic valves.
The agreement includes an upfront payment of $320 million in cash, plus an additional payment upon completion of certain regulatory milestones, for a total of up to $410 million.
Traditionally, mitral regurgitation is treated through open heart surgery. However, only about 20 percent of the 600,000 patients diagnosed in the U.S. and Europe each year undergo surgery. Evalve's catheter-based MitraClip system, used to clip the leaflets of the mitral valve together to reduce regurgitation, is a treatment option approved in Europe for non-surgical mitral valve repair for patients suffering from the effects of mitral regurgitation. The MitraClip system is an investigational device in the United States and is currently in clinical trials.
Under the terms of the agreement, Abbott said it will acquire the remaining 90 percent of outstanding equity of Evalve that it does not already own for an upfront payment of $320 million, plus a $90 million payment if certain regulatory milestones are met.
The transaction is subject to customary closing conditions, including antitrust clearances. Abbott expects the transaction to close in the fourth quarter, adding that the transaction does not impact this year’s previously issued earnings-per-share guidance.