CryoCor, Inc. and Boston Scientific Corporation have announced a strategic collaboration in the field of cryoablation, or the use of extreme cold, for the treatment of cardiac arrhythmias.
The collaboration involves the co-development of therapeutic solutions for atrial fibrillation, or Afib. Afib is the most common cardiac arrhythmia and affects approximately 6 million patients around the globe, and it is estimated that over $9.0 billion is spent annually in the United States on healthcare costs associated with Afib.
The collaboration involves the co-development of a console intended to deliver cryo energy to Boston Scientific's proprietary cryo balloon catheter for the treatment of Afib. Under the collaboration, CryoCor will be responsible for the development, and possible manufacture, of a cryoablation console for use with Boston Scientific's internally developed cryo-therapy balloon, which may incorporate some of CryoCor's catheter technologies. Upon successful achievement of pre-established development milestones, Boston Scientific has agreed to make certain payments to CryoCor. Boston Scientific also has agreed to pay CryoCor royalties on the sale by Boston Scientific of the products developed under the collaboration. In addition to the development program, Boston Scientific purchased shares of CryoCor common stock for an aggregate purchase price of $2.5 million, and agreed to purchase an additional $2.5 million of common stock upon successful achievement of certain development milestones.
Boston Scientific intends to market its cryo-therapy balloon for the treatment of Afib, subject to regulatory approvals. Boston Scientific's cryo balloon is being developed to attempt to provide a safe, standardized, and broadly applicable method to isolate the electrical activity originating from the pulmonary veins, which are believed to be a source for the initiation and propagation of Afib.
Joe Fitzgerald, President of Boston Scientific's Electrophysiology Division, stated, "we believe that the proposed combination of CryoCor's proprietary console design and cryogenics expertise, along with Boston Scientific's extensive history of balloon catheter leadership, will be a significant strategic and competitive advantage in the Afib market."
Ed Brennan, Chief Executive Officer of CryoCor, said, "we are pleased that Boston Scientific chose to collaborate with CryoCor for the development of this important product. We view this relationship as further validation of cryoablation, and CryoCor specifically, and we believe that Boston Scientific can provide valuable assistance to us as we prepare for the launch of our cryoablation system in the United States."