USA — Abbott, a global healthcare company, recently completed the acquisition of Cardiovascular Systems, Inc. (CSI), a medical device company that provides innovative atherectomy systems used in treating peripheral and coronary artery disease.
The deal was initially believed to be worth approximately US$890 million when it was announced back in February.
However, a new report from Star Tribune reveals that the deal was actually worth approximately US$850 million.
Coronary artery disease (CAD) is a major public health concern worldwide, and its prevalence has been increasing over the years.
CAD is the narrowing or blockage of coronary arteries, which supply oxygen-rich blood to the heart, due to the accumulation of fatty deposits called plaques.
This can cause chest pain (angina), shortness of breath, and other symptoms by reducing the blood flow to the heart.
CAD can be treated with lifestyle changes, medications, or procedures like angioplasty or bypass surgery to improve blood flow to the heart.
According to the National Center for Biotechnology Information (NCBI) 2023 report, coronary artery disease (CAD) is responsible for 17.8 million deaths yearly, making it the third leading cause of mortality worldwide.
The report highlights the urgent need for effective and innovative treatments to combat this disease. It is predicted that the coronary artery disease (CAD) market shall grow at a CAGR of 8.86% from 2022 to 2028.
The acquisition of CSI provides Abbott with a complementary solution for treating vascular disease.
CSI is well-known for its atherectomy devices, including the Diamondback 360 Coronary Orbital Atherectomy System used in treating CAD and Diamondback 360 Peripheral Orbital Atherectomy System used in treating Peripheral artery disease (PAD).
The Diamondback 360 system is a minimally invasive procedure that cuts plaque from the walls of a blood vessel.
Healthcare professionals use it as an alternative or in addition to balloon angioplasty to prepare vessels for angioplasty or stenting to restore blood flow.
Abbott’s acquisition of CSI enhances the company’s ability to care for patients with peripheral and coronary artery disease.
In a news release, Abbott stated that “for patients with complex cardiovascular disease, new and innovative therapies such as CSI’s leading atherectomy system are an opportunity to live better, fuller lives.”
Pursuant to the terms of the agreement, CSI is now a wholly owned subsidiary of Abbott, and the completion of the transaction marked the last day of trading for CSI shares on the Nasdaq market.
When the deal was first announced, analysts were optimistic about the prospects of the business combination.
“We think ABT’s size and scale may expedite development,” said BTIG analysts Marie Thibault and Sam Eiber.
“With CSII trading at historically depressed valuation levels, we see this as a prudent purchase with a favorable risk/reward profile for ABT.”
With this acquisition, Abbott has further expanded its cardiovascular portfolio and is better equipped to provide innovative solutions to patients with peripheral and coronary artery disease.
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