St. Paul, Minn.-based medical device manufacturer St. Jude Medical announced it would pay $1.3 billion to purchase Advanced Neuromodulation Systems of Plano, Texas, which produces spinal implant devices used to relieve pain. Under the deal, St. Jude would pay $61.25 per share for ANS stock.
ANS has a 20% market share of the implantable neurostimulator market, with Medtronic dominating the $1 billion industry with nearly 80% market share.
The status of an investigation by HHS' inspector general into ANS' business and marketing practices remains unclear. In February, Modern Healthcare reported that to gain market share in 2001 ANS paid physicians $1,000 for referring patients to the ANS product for five-day test trials after the patients failed to find relief from a competing Medtronic product. At the time ANS President Christopher Chavez said the company did not use sales incentive programs but does sponsor clinical studies.
In its most recent fiscal year ANS reported earning $18.1 million on total 2004 revenue of $120.7 million. At deadline officials from ANS, St. Jude and the inspector general's office could not be reached for comment.