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St. Jude Medical Completes Acquisition of NeuroTherm

St. Jude Medical has announced that it has completed its acquisition of privately held NeuroTherm, Inc., a manufacturer of interventional pain management therapies.

NeuroTherm is a global leader in the treatment of spinal pain using radiofrequency ablation (RFA), a segment of the chronic pain market in which St. Jude Medical does not currently participate. NeuroTherm is expected to add approximately $10 million to $15 million to St. Jude Medical’s 2014 sales. Excluding acquisition-related expenses, this transaction will be neutral to St. Jude Medical’s consolidated earnings per share in 2014 and accretive thereafter on a GAAP basis.

“NeuroTherm’s radiofrequency ablation products are an ideal complement to St. Jude Medical’s chronic pain portfolio, providing our global sales force with additional interventional pain therapies that offer potential relief to patients earlier in the chronic pain continuum,” said Michael T. Rousseau, chief operating officer of St. Jude Medical. “As the only medical device manufacturer with both RFA and spinal cord stimulation, this acquisition will enable us to offer more treatment options to patients worldwide who suffer from the debilitating effects of chronic pain.”

Chronic pain affects approximately 1.5 billion people worldwide — more than heart disease, cancer and diabetes combined. The burden of chronic pain carries an economic price tag of $300 billion annually in the U.S. and costs €300 billion to European health care systems. In 2013, there were 230 million Americans diagnosed with acute and chronic pain; only about 8 percent of these patients received interventional therapy.

RFA is a minimally invasive procedure that is designed to reduce back pain by interrupting the nerve supply from painful facet joints in the neck or back. RFA involves the pinpoint application of heat to destroy the painful nerve or nerves. The treatment has been used for over 25 years and provides interventional pain therapy to patients earlier in the chronic pain continuum, often prior to neurostimulation or surgical intervention.

NeuroTherm’s flagship technology is a multi-lesion RF generator that allows real-time temperature monitoring and enables continuous delivery of energy to each site designed to ensure complete treatment of each targeted spinal nerve. The company’s products are available in over 65 countries.

“Over the last year, we have launched two novel neuromodulation products, made a strategic investment in Spinal Modulation, and initiated two multi-center, randomized clinical studies to evaluate alternatives for patients living with chronic pain,” said Michael T. Rousseau, St. Jude Medical chief operating officer. “This acquisition further demonstrates St. Jude Medical’s commitment to our chronic pain program and our steadfast focus on improving patient outcomes.”

St. Jude Medical is the only medical device manufacturer with a chronic pain product portfolio that offers both radiofrequency ablation for spinal pain and spinal cord stimulation. The company now has a comprehensive range of radiofrequency products available worldwide for interventional pain management, including generators, electrodes and needles.

BofA Merrill Lynch served as financial advisor and Gibson, Dunn & Crutcher LLP as legal counsel to St. Jude MedicalPiper Jaffray & Co. acted as financial advisor and Calfee, Halter & Griswold LLP served as legal counsel to NeuroTherm.

Coincidentally PEI has represented both St. Jude Medical and Neurotherm in Ireland for the last number of years so is well placed to advise you on either product range. If you would like more information about the Neurotherm range specifically please contact your local PEI hospital representative or call PEI at +353 1 419 6900.

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