St. Jude invests $60M in CardioMEMS
St. Jude Medical will make a $60 million equity investment in CardioMEMS, a medical device company focused on wireless monitoring technology.
Under the terms of the agreement, St. Paul, Minn.-based St. Jude said that it will acquire a 19 percent ownership in the Atlanta-based CardioMEMS and be given the option to purchase the company for an additional $375 million during the period that extends through certain milestones.
The CardioMEMS wireless monitoring system is placed inside the pulmonary artery and works to assess cardiac performance by taking pulmonary artery pressure measurements, helping to detect heart failure (HF).
The CarioMEMS monitoring system was tested during the CHAMPION (CardioMEMS Heart sensor Allows Monitoring of Pressure to Improve Outcomes in NYHA class III patients) trial. Results of the randomized, controlled trial showed that HF-related hospitalizations were 30 percent lower at six months and showed a 38 percent per year reduction in HF hospitalizations after a 15-month follow-up period, according to the company.
According to St. Jude, the current agreement will not change the company’s consolidated earnings outlook for 2010.
Under the terms of the agreement, St. Paul, Minn.-based St. Jude said that it will acquire a 19 percent ownership in the Atlanta-based CardioMEMS and be given the option to purchase the company for an additional $375 million during the period that extends through certain milestones.
The CardioMEMS wireless monitoring system is placed inside the pulmonary artery and works to assess cardiac performance by taking pulmonary artery pressure measurements, helping to detect heart failure (HF).
The CarioMEMS monitoring system was tested during the CHAMPION (CardioMEMS Heart sensor Allows Monitoring of Pressure to Improve Outcomes in NYHA class III patients) trial. Results of the randomized, controlled trial showed that HF-related hospitalizations were 30 percent lower at six months and showed a 38 percent per year reduction in HF hospitalizations after a 15-month follow-up period, according to the company.
According to St. Jude, the current agreement will not change the company’s consolidated earnings outlook for 2010.