St. Jude Medical, Inc. (NYSE:STJ), a global medical device company, today completed the previously announced acquisition of LightLab Imaging, Inc. for approximately $90 million in cash.
“The OCT technology is the ideal complement to our FFR technology and provides us with a comprehensive platform that will help us to grow our cardiovascular business.”
LightLab is the pioneer and leader in the development of Optical Coherence Tomography (OCT), a high resolution diagnostic coronary imaging technology which aids physicians in the treatment of cardiovascular disease.
The acquisition of OCT technology accelerates the expansion of St. Jude Medical's cardiovascular growth platform by providing the company with a comprehensive product offering that will allow the Company to compete in, and potentially expand, the intravascular imaging market. The IVUS market is estimated to be $500 million for 2010 and to grow 10 to 15 percent annually. During the second half of 2010, St. Jude Medical expects the OCT platform to contribute an additional $20 million in revenue to its cardiovascular business. The OCT market is expected to grow at a double-digit compounded annual rate over the next five years and is expected to capture IVUS market share.
The combination of both OCT and the complementary Fractional Flow Reserve (FFR) technology will provide physicians with comprehensive lesion assessment information; FFR provides physiological data to help physicians determine which lesions to treat, and OCT provides anatomical images which can help guide stent selection and deployment as well as provide post-stenting information to help ensure the procedure went smoothly.
"We are pleased to have completed this transaction, and we welcome LightLab employees to St. Jude Medical," said Daniel J. Starks, Chairman, President and Chief Executive Officer of St. Jude Medical. "The OCT technology is the ideal complement to our FFR technology and provides us with a comprehensive platform that will help us to grow our cardiovascular business."
David Kolstad, President and Chief Executive Officer of LightLab, added, "The LightLab team is excited to join St. Jude Medical, and we look forward to further strengthening the company's interventional cardiology business with the OCT technology. There is a strong alignment between St. Jude Medical and LightLab both in our product portfolios and our shared vision of improving patient outcomes through solutions which enable physicians to make earlier and more accurate treatment decisions."
With this transaction, LightLab will become a part of the St. Jude Medical Cardiovascular Division, and Mr. Kolstad will join the company.