Dutch health technology company Royal Philips announced their plans to purchase U.S. cardiovascular device maker Spectranetics Corp. (NASDAQ: SPNC), a company specializing in cardiovascular devices for the legs.
Prior to the acquisition, Spectranetics experienced significant growth in recent years. For this reason, shareholders received a handsome 27% premium on price, amounting to $38.50 per share. A product dubbed Stellarex and another named AngioSculpt were noted as two of the many products Spectranetics offers patients. Both devices are balloons coated in medicine and inserted into coronary arteries to treat blockages. Interestingly, neither device is sold in the U.S. which, according to the World Health Organization, has higher rates of heart disease than Europe. Stellarex is currently seeking FDA clearance to sell in the states.
In a press release issued this morning, Philips CEO Frans van Houten expressed excitement about the company’s recent string of acquisitions and the American company’s place in its business. Van Houten says, “Spectranetics’ highly competitive product range, integrated with our portfolio of interventional imaging systems, devices, software and services will enable clinicians to decide, guide, treat and confirm the appropriate cardiac and peripheral vascular treatment to deliver enhanced care for patients with better outcomes, as well as significantly boost recurring revenue streams for Philips.”
Back in 2015, Volcano Corporation became part of the portfolio touted by van Houten. Similarly, Volcano - also an American company - produced various measurement and imaging technologies to treat cardiovascular patients. Its subsidiaries included Axsun Technologies, Novelis, and Impact Medical Technologies. The most recent merger by Philips is an attempt to increase their position and dominance in imaging systems.
Spectranetics stock is currently up 26.23% in response to the news; matching the premium Philips initially agreed to pay for the company.