St. Jude Medical has completed its acquisition of CardioMems only days after CardioMems received federal approval to market its wireless implantable monitoring sensor for heart-failure patients.
St. Jude Medical, the St. Paul, Minn.-based global medical-device manufacturer, first announced plans to invest $60 million in CardioMems in 2010.
When the device was approved by the Food and Drug Administration on May 28, St. Jude exercised its exclusive option to pay another $375 million to acquire the remaining 81% of the Atlanta-based company.
CardioMems developed what it calls the HF system, which is implanted in the pulmonary artery, where it measures pressure. The new technology is expected to reduce hospitalizations and improve quality of life for patients with heart failure when they return home by allowing cardiologists to remotely monitor their heart-failure patients. When pressure in the pulmonary artery increases, healthcare providers are notified and can improve treatment options.
CardioMems has submitted data showing that it plans to charge about $14,000 per system, according to a research note published by Wells Fargo senior analyst Larry Biegelsen. Domestic sales of the device would hit about $259 million by 2018, he estimated.
According to St. Jude Medical, about 670,000 Americans are diagnosed with heart failure each year.
“Our goal is to provide both clinical and economic quality outcomes for the healthcare community, reducing the economic burden of heart failure and improving the quality of life for patients,” a company spokeswoman said.
Follow Jaimy Lee on Twitter: @MHjlee
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