New User:

Forgot your password?

Stock Market & Financial Investment News

News Breaks
May 27, 2014
16:15 EDTVOLCVolcano acquires AtheroMed
Volcano Corporation said it has signed an agreement to acquire AtheroMed a privately-held company that has developed the Phoenix Atherectomy System used in the treatment of peripheral artery disease,PAD.The device has reimbursement in the U.S. and select countries in Europe. Under terms of the agreement, Volcano will pay $115M in cash at closing, which is expected to occur in the current quarter. In addition, Volcano will make a $15M milestone payment if a Phoenix device currently before the FDA receives clearance by November 15. This application covers design for manufacturing improvements to the currently approved device. In addition, the agreement calls for potential future revenue-based milestone payments by Volcano to AtheroMed. "We believe the potential of Phoenix to both grow the atherectomy market and achieve a strong market share position will facilitate our revenue, gross margin and operating income expansion goals," said Scott Huennekens, president and CEO. Huennekens said the company plans to initiate a limited market release of the Phoenix by the end of 2014 and a full market release in early 2015. Volcano said based on anticipated costs related to the commercialization of the Phoenix System, it believes this transaction on a stand-alone basis will be dilutive for two years post-closing. However, these expenses of approximately $7M in 2014 will be offset by a reprioritization of spending in other areas of the company. As a result, on a before purchase accounting basis, the company is not changing its operating expense outlook for 2014, or GAAP and non-GAAP EPS guidance for the second quarter and all of 2014. For 2015, the company expects operating margin dilution of this transaction on a stand-alone basis, before purchase accounting, will be approximately $12M-$13M. However, the company believes that a significant portion of this dilution will be covered by a reprioritization of existing projects.
News For VOLC From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
There are no results for VOLC

Sign up for a free trial to see the rest of the stories you've been missing.
I agree to the disclaimer & terms of use