St. Jude to acquire Savacor for $50 million to further heart failure research

By E. Janene Geiss

Philadelphia, Dec. 1 - St. Jude Medical, Inc. announced Thursday that it has signed a definitive agreement to acquire privately held Savacor, Inc. for $50 million.

Additional terms tied to regulatory and sales milestones were not disclosed, according to a company news release. The acquisition is expected to close by the end of the year, officials said.

St. Jude said it will record a $50 million in-process research and development charge in connection with the transaction.

Based in Los Angeles, Savacor has heart failure diagnostic and therapy guidance products and technologies under development and in clinical evaluation.

The company currently has a small implantable sensor device in clinical trials both in the United States and internationally that measures left atrial pressure and body temperature to help physicians detect and manage symptoms associated with progressive heart failure, officials said. Increased pressure in the left atrium is a predictor of pulmonary congestion, which is the leading cause of hospitalization for congestive heart failure patients.

"The Savacor technology has exciting potential and will complement the development efforts already underway at St. Jude Medical in managing the co-morbidities of heart failure patients," Michael J. Coyle, president of St. Jude's Cardiac Rhythm Management business, said in the release.

Congestive heart failure is a disorder in which heart damage progressively weakens the cardiovascular system. According to the American Heart Association, nearly 5 million Americans are living with heart failure and about 22 million people worldwide suffer from the condition.

St. Jude, based in St. Paul, Minn., engages in development, manufacture and distribution of cardiovascular medical devices for cardiac rhythm management, cardiac surgery, and cardiology and vascular access therapy.

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