Given Imaging has acquired from The SmartPill Corp. the assets related to the SmartPill GI Monitoring System for $6 million.
The SmartPill is an ingestible capsule that uses sensor technology to measure pH, pressure and temperature in the gastrointestinal (GI) tract. The SmartPill System measures gastric emptying and total GI (stomach, small bowel and colon) transit times and is used to evaluate motility disorders like gastroparesis and constipation.
The SmartPill was cleared by the FDA and CE marked for the evaluation of gastroparesis and constipation, and has an existing CPT code. A category 1 CPT code specifically and exclusively for the SmartPill procedure goes into effect in January 2013.
The company expects the acquisition to have an immediate contribution to its top-line results and will be accretive to the bottom line by the end of 2014. Given Imaging does not expect that the acquisition will have a meaningful contribution to its fourth quarter 2012 revenues. The company will record the acquisition expenses in its fiscal year 2012 financial statements.
Yokneam, Israel-based Given Imaging plans to invest in clinical trials, market development and manufacturing efficiency to expand the body of clinical evidence for and awareness of SmartPill. The SmartPill Corp. is based in Buffalo, N.Y.
Administered in the physician's office, the SmartPill is ambulatory and allows patients to go about their normal routine during the course of the test. As the SmartPill capsule passes through the GI tract, it transmits data to a recorder worn by the patient. The capsule is capable of transmitting data continuously for at least five days.
The single-use, non-imaging capsule is excreted naturally from the body, usually within a day or two. Once the capsule has passed from the body, the patient returns the data recorder to the physician, who can then download the collected data to a computer. The physician then uses SmartPill's MotiliGI software to display and analyze the data, providing the physician with test results in both graphical and report formats.