DOW JONES NEWSWIRES
Abbott Laboratories (ABT) agreed to buy cardiac surgery
technology provider Evalve Inc. for up to $410 million, broadening
its reach in the emerging market for minimally invasive heart
repair.
The acquisition doesn't change Abbott's guidance for 2009
earnings.
"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," said John Capek, executive
vice president, medical devices, at Abbott.
The move shadows rival Medtronic Inc. (MDT), which in February
said it would spend at least $1.03 billion to buy two privately
held makers of replacement heart valves that don't require major
surgery.
Abbott will pay $320 million in cash initially, with regulatory
milestones potentially bringing the total up to $410 million. The
company already owns about 10% of Evalve's stock.
Evalve Chief Executive Ferolyn Powell will continue to lead
those operations after the closing.
Abbott has benefited in recent years from a diverse lineup that
ranges from baby formula to a high-priced biologic drugs like
Humira, which are engineered from living cells. That has allowed
the company to outpace rivals who are more heavily concentrated in
a decelerating U.S. market for prescription drugs. But Abbott's
financial performance has suffered recently in its biggest unit,
pharmaceuticals, in the face of copycat generic versions for
Depakote and slowing growth for Humira.
-By Jay Miller and Kathy Shwiff, Dow Jones Newswires;
212-416-2355; jay.miller@dowjones.com