August 27, 2020
Amsterdam, the Netherlands - Royal Philips(NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced that it has signed an agreement to acquire Intact Vascular, Inc., a U.S.-based developer of medical devices for minimally-invasive peripheral vascular procedures. Intact Vascular will enhance Philips' image-guided therapy portfolio, combining Philips' interventional imaging platform and diagnostic and therapeutic devices with Intact Vascular's unique, specialized implantable device to optimize the treatment of patients with Peripheral Artery Disease (PAD).
PAD develops when plaque builds up in arteries and reduces blood flow to the limbs, most commonly the legs. It affects more than 200 million people worldwide [1]. PAD symptoms include recurrent fatigue, leg pain, and foot or leg wounds that do not heal or heal very slowly. Critical Limb Ischemia (CLI) is an advanced stage of PAD, and is typically associated with high rates of amputation and mortality.
"Acquiring Intact Vascular will expand our portfolio of minimally invasive therapy options for Peripheral Artery Disease with the Tack Endovascular System [2], a much needed implant that effectively restores blood flow in small limb vessels, promotes healing and preserves limbs," said Chris Landon, Senior Vice President and General Manager Image Guided Therapy Devices at Philips. "Through the integration of our interventional imaging systems and diagnostic and therapeutic devices, we will be able to provide clinicians with a complete procedural solution to optimize the treatment of patients with this disease."
Philips' market leading peripheral vascular portfolio already includes advanced interventional imaging systems for precision guidance; intravascular ultrasound (IVUS) catheters to assess the location of the disease and lesion morphology and guide and confirm the treatment; peripheral atherectomy devices to remove blockages; and peripheral therapy devices, such as Philips' Stellarex drug-coated balloon, to treat lesions.
Intact Vascular will strengthen this portfolio with the Tack Endovascular System, which reinforces standard and drug-coated balloon PAD treatment results. Intact Vascular's Tack [2] implant is a first-of-its-kind, minimal-metal, dissection repair device that provides precision treatment of peripheral arterial dissections following balloon angioplasty in above-the-knee (ATK) and below-the-knee (BTK) therapeutic interventions [3]. The Tack implant leaves less metal behind compared to stents, preserving future treatment options and ultimately preserving limbs. Moreover, Intact Vascular's Tack implant offers a solution for repairing dissections and optimizing post-angioplasty outcomes in the challenging CLI patient population.
"We are excited about the strategic fit between our team, expertise and unique therapeutic device, and Philips' Image-Guided Therapy business," said Bruce Shook, President and CEO of Intact Vascular. "We share the same vision of complete procedural solutions to improve existing procedures and expand treatment options. We look forward to completing the transaction and working closely with Philips on a seamless transition."
The transaction, which is subject to customary closing conditions, is expected to be completed in the third quarter of 2020. Philips will acquire Intact Vascular for an upfront cash consideration of USD 275 million (approx. EUR 234 million), and deferred payments for which the company expects to recognize a provision of USD 85 million (approx. EUR 72 million) upon completion of the transaction.
Intact Vascular was founded in 2011 and is headquartered in Wayne, Pennsylvania, in the U.S. On completion of the transaction, Intact Vascular will become part of Philips' Image-Guided Therapy business.
[1] J. Shu J. and G. Santulli; Update on peripheral artery disease: Epidemiology and evidence-based facts; Atherosclerosis, 2018 Aug; 275: 379-381.
[2] Tack Endovascular System and Tack are trademarks of Intact Vascular, Inc.
[3] The Tack Endovascular System has been approved by the U.S. Food and Drug Administration (FDA) for ATK and BTK dissection repair interventions.
For further information, please contact:
Ben Zwirs
Philips Global Press Office
Tel.: +31 6 15213446
E-mail: ben.zwirs@philips.com
Derya Guzel
Philips Investor Relations
Tel.: +31 20 59 77222
E-mail: derya.guzel@philips.com
About Royal Philips
Royal Philips.
Forward-looking statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips' organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
Attachments
- Intact Vasculars Tack implant-4F (https://ml-eu.globenewswire.com/Resource/Download/3c3067f4-c050-4e0b-a6ae-2292b1bcb8b2)
- Intact Vasculars Tack implant-4F-BTK (https://ml-eu.globenewswire.com/Resource/Download/f976a2ad-d59c-47c2-bf5b-fc59ea41d806)
- Peripheral hospital procedure01 (https://ml-eu.globenewswire.com/Resource/Download/176d8a43-3d75-45a5-90b5-8c9136868999)
- Peripheral hospital procedure02 (https://ml-eu.globenewswire.com/Resource/Download/be44a17e-6822-426f-bc53-04a5f842dd7e)
