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Philips to enhance therapeutic offerings via dual acquisitions

By John R. Fischer

Royal Philips is in the process of acquiring Spectranetics Corporation and recently completed the acquisition of CardioProlific Inc. as part of a plan to combine its image-guided therapy technology with devices that provide therapeutic treatments for peripheral vascular disease and other serious conditions.

Incorporating the capabilities of these companies will enable Philips to offer its imaging technology to identify and confirm treatments, as well as catheter-based products developed by Spectranetics and CardioProlific to administer those treatments in minimally-invasive procedures.

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“We have a better solution for our customers to not only guide them during the procedure with imaging and decide, based on intravascular imaging, but also treat these patients better, and then have a proclamation on whether they got the right treatment again with imaging,” said Bert Van Meurs, the business leader for the Image-Guided Therapy Business Group at Philips.

Peripheral vascular disease refers to the narrowing of blood vessels outside the heart and brain that creates blockages that prevent the flow of blood to the limbs through arteries and veins. If left untreated, it can lead to amputations of fingers, toes and limbs as well as strokes, heart attacks or death.

Spectranetics, which specializes in areas of vascular intervention and lead management, has developed devices for tackling peripheral vascular disease and other conditions, such as the extraction of pacemaker leads, cardiovascular disease and coronary artery disease. Its portfolio includes a variety of laser atherectomy catheters for eliminating and reducing blockages in coronary and peripheral arteries; the AngioSculpt scoring balloon that mechanically pushes aside substances that create blockage; Stellarex drug-coated balloons that help prevent blockage from recurring and treat different types of lesions; and AngioSculptX, the only drug-coated scoring balloon on the market. Philips purchased the company for €1.9 billion with the agreement to be finalized in the third quarter of this year.

“We really see it as a complimentary fit where our imaging portfolio really has a strong fit with their therapeutic devices portfolio, not only for peripheral vascular, but also coronary artery disease and EP [Electrophysiology],” said Van Meurs.

The financial details were not disclosed for CardioProlific, a private startup that is creating catheter-based thrombectomy technology for treating peripheral vascular disease by removing clots from arteries and veins. Philips plans to develop the technology alongside the company.

Philips previously purchased Volcano Corporation, which develops catheter-based imaging and measurement solution products, in late 2014 for $1.2 billion to enhance its imaging technology. Following the acquisition of CardioProlific and Spectranetics, employees from both companies will join Philips’ Image-Guided Therapy Business Group, which is called Philips Volcano.

Van Meurs says that the combination of imaging and catheter-based therapeutic solution devices will allow doctors to address problems in patients faster, while potentially reducing recovery periods, hospital stay times and costs for health care systems.

“Our customers, interventional cardiologists or interventional radiologists, are really looking at having the best treatment for the patient, and therefore, we are looking at these procedures and seeing how we can innovate,” said Van Meurs.

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