Press Release
Abbott to Acquire Evalve, Inc., a Leader in Minimally Invasive Cardiac Valve Repair Technology
Acquisition Expands Vascular Portfolio, Provides Abbott with Global
Leadership Position in Non-Surgical Treatment Option for Structural Heart
Repair
September 10, 2009
Abbott Park, Illinois and Menlo Park, California — Abbott (NYSE: ABT)
announced today a definitive agreement to acquire the outstanding equity of
Evalve, Inc., the global leader in the development of devices for minimally
invasive repair of cardiac mitral valves. The acquisition provides Abbott with
a presence in the growing area of non-surgical treatment for structural heart
disease, in which physicians use catheter-based devices to repair or replace
basic structural components of the heart such as mitral and aortic valves. The
agreement includes an upfront payment of $320
million in cash, plus an additional payment upon completion of certain
regulatory milestones, for a total of up to $410
million.
"The acquisition of Evalve will provide Abbott with leading technology
in the emerging field of minimally invasive heart valve repair and further
broadens Abbott's medical devices portfolio," said John M. Capek, Ph.D.,
executive vice president, Medical Devices, Abbott. "Evalve is on the
cutting edge with its non-surgical approach to treating structural heart
disease. With this breakthrough mitral valve repair technology, physicians will
be able to offer their patients a minimally invasive alternative to open heart
surgery — not unlike the opportunity that stents provided more than two decades
ago for the treatment of coronary artery disease."
Mitral regurgitation, a condition that prevents the mitral valve from
closing completely, is the most common type of heart valve insufficiency in
Europe and the United States, and affects millions of people worldwide.
Traditionally, mitral regurgitation is treated through open heart surgery.
However, only about 20 percent of the 600,000
patients diagnosed in the U.S. and Europe each year undergo surgery. Evalve's
minimally invasive catheter-based MitraClip® system, used to clip the leaflets
of the mitral valve together to reduce regurgitation, is the first commercially
available treatment option approved in Europe for non-surgical mitral valve
repair for patients suffering from the effects of mitral regurgitation. The
MitraClip system is an investigational device in the United States and is
currently in clinical trials.
"Combining Evalve's first in class mitral valve repair technology with
Abbott's global presence, commercial infrastructure and manufacturing expertise
will help advance minimally invasive treatment options for the millions of
patients with mitral regurgitation," said Robert Hance, senior vice
president, vascular, Abbott. "We look forward to welcoming Evalve as a key
part of Abbott's vascular business."
"Patients in Europe have benefited from having access to the MitraClip
technology since it received CE Mark last year," said Ferolyn Powell,
president and chief executive officer of Evalve, who will continue to lead the
Evalve team and will report to Hance after the acquisition closes. "We look
forward to becoming a part of Abbott and working together to accelerate our
business and expand our global reach to patients around the world with our
minimally invasive technologies."
Under the terms of the agreement, Abbott will acquire the remaining 90 percent of outstanding equity of Evalve, Inc. that
it does not already own for an upfront payment of $320
million, plus a $90 million payment if
certain regulatory milestones are met. The transaction does not impact Abbott's
previously issued earnings-per-share guidance for 2009.
The transaction is subject to customary closing conditions, including
antitrust clearances. Abbott expects the transaction to close in the fourth
quarter of 2009.
About Evalve, Inc.
Founded in 1999 by The Foundry and Dr. Fred St. Goar, Evalve, Inc.,
headquartered in Menlo Park, Calif., has developed a proprietary system which
enables percutaneous repair of cardiac valves. The company's initial products
are intended to reduce the risks, trauma and costs associated with current
open, arrested heart surgical options. For more information about Evalve, Inc.,
visit www.evalveinc.com. Previous major
investors in Evalve include: New Enterprise Associates; Delphi Ventures; Split
Rock Partners; Apothecary Capital; Cutlass Capital; ABS Ventures / Kearny
Venture Partners; Saints Capital; Three Arch Partners; Emergent Medical
Ventures; and Integral Capital Partners.
About Abbott
Abbott (NYSE: ABT)
is a global, broad-based health care company devoted to the discovery,
development, manufacture and marketing of pharmaceuticals and medical products,
including nutritionals, devices and diagnostics. The company employs more than
72,000 people and markets its products in more than 130 countries.
Abbott Forward Looking Statement
Some statements in this news release may be forward-looking statements for
purposes of the Private Securities Litigation Reform Act of 1995. Abbott
cautions that these forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially from those
indicated in the forward-looking statements. Economic, competitive,
governmental, technological and other factors that may affect Abbott's
operations are discussed in Item 1A, "Risk
Factors," to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2008, and are incorporated by reference.
Abbott undertakes no obligation to release publicly any revisions to
forward-looking statements as a result of subsequent events or
developments.
About
Evalve Fact Sheet 
About Evalve Fact Sheet
Evalve, Inc. is a cardiac medical device company developing leading-edge
technology to enable minimally invasive repair of cardiac valves.
- Headquarters: Menlo Park, CA
- Founded: 1999
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MitraClip® system: Designed for minimally invasive mitral valve
repair. The MitraClip system received CE mark designation in 2008 and is
currently available in Europe. In the U.S. it remains an investigational device
and is currently in clinical trials. The catheter-based MitraClip® system is
designed to clip the leaflets of the valve together to reduce mitral
regurgitation. The MitraClip system incorporates three subsystems:
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- MitraClip device (implant)
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About Mitral Regurgitation
Mitral regurgitation is a condition that prevents the heart's mitral valve
from closing completely, causing blood to flow backwards within the heart.
Mitral regurgitation is the most common type of heart valve insufficiency and
can ultimately lead to heart failure. Traditionally, mitral regurgitation is
treated through open heart surgery to repair or replace the mitral valve.
The mitral valve is the "inflow valve" for the left side of the
heart, separating the left atrium (a chamber in the heart which collects blood
from the lungs) from the left ventricle (the heart's main pumping chamber).
Market Size
- Mitral regurgitation is the most common type of heart valve insufficiency;
more than 600,000 patients are diagnosed annually in the U.S. and Europe.
- Less than 20 percent of patients diagnosed annually in the U.S. and Europe
are treated surgically. The remaining 80 percent are either non-surgical
candidates or treated for symptomatic relief only.
Media:
Kelly Morrison
Jonathon Hamilton |
(847) 937-3802
(408) 624-0314 |
Financial:
John Thomas
Tina Ventura |
(847) 938-2655
(847) 935-9390 |
Evalve Contact:
Heather Harper |
(415) 486-3233 |
