ATS Medical/CryoCath
This article was originally published in The Gray Sheet
Executive Summary
Manufacturer of heart valves and cardiac surgery products ATS Medical acquires CryoCath's surgical cryoablation business June 19 in a deal worth up to $30 million, including $22 million up front and $8 million in milestone payments. The deal builds on the firms' 2004 distribution agreement for the argon-based devices, which include CryoCath's SurgiFrost and FrostByte systems for treating cardiac arrhythmias. CryoCath's divestiture of the business will enable it to focus on developing its Arctic Front ablation catheter for treating atrial fibrillation, and other electrophysiology products, the firm says (1"The Gray Sheet" March 12, 2007, p. 19). ATS notes that the deal will add $3 million to $5 million in sales this year alone, and enable it to achieve profitability one year ahead of schedule, in the second half of 2008...