St. Jude to Buy Neuromodulation Firm

In a move to spur the company's growth, St. Jude Medical, Inc. (St. Paul, MN, USA), has agreed to acquire Advanced Neuromodulation Systems, Inc. (ANS, Plano, TX, USA) for around U.S.$1.3 billion.

ANS is a leading provider of neuromodulation devices and holds the second leading position in the spinal cord stimulation segment. Neuromodulation delivers very small, precise doses of electricity or drugs directly to nerve sites and is indicated for patients who suffer from chronic pain or other disabling nervous system disorders. Clinical trials are now underway for new indications that may expand this market to include Parkinson's disease and essential tremor. The neuromodulation market has grown more than 20% during the past several years.

ANS offers an array of implantable spinal cord stimulation (SCS) devices, including rechargeable implantable pulse generators (IPGs), conventional battery-powered IPGs, and radio frequency stimulators. Following the closing of the transaction, ANS will become a newly created division of St. Jude Medical and will remain at its headquarters in Plano. The transaction gives St. Jude an immediate position in the neuromodulation segment of the medical device industry. In addition, St. Jude expects to accelerate the flow of innovative products for cardiac rhythm management and neuromodulation by using the research and engineering expertise of both companies as well as St. Jude's manufacturing resources.

"This is a compelling strategic opportunity for St. Jude Medical and is consistent with our efforts to create additional long-term growth drivers that diversity our business mix and deliver value to our shareholders while benefiting patients and physicians around the world,” noted Daniel J. Starks, chairman, president, and CEO of St. Jude Medical.





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