Sapiens’ deep brain stimulation technologies strengthen Medtronic’s Neuromodulation portfolio and neuroscience leadership position
Medtronic, Inc. today announced that it has acquired Sapiens Steering Brain Stimulation (Sapiens SBS), a privately held developer of deep brain stimulation (DBS) technologies for approximately $200 million in an all-cash transaction.
The acquisition of Sapiens SBS strengthens Medtronic’s capabilities in an important, emerging frontier of medicine – the modulation of brain function. The acquisition exemplifies Medtronic’s ongoing investment in innovation as the company strives to become the partner of choice for neurosurgeons and neuroscience centers around the world.
Sapiens SBS, located in Eindhoven, The Netherlands, is developing a DBS system that features an advanced DBS lead with 40 individual stimulation points. This advanced system is designed to allow more precise stimulation of the intended target in the brain and may potentially result in reduced procedure time and fewer stimulation-induced side effects.
Employees at the Eindhoven facility will continue to work toward bringing this technology to market. In the future, the site will serve as a global research and development center for Medtronic’s Neuromodulation business, complementing our existing R&D operations.
Medtronic and Sapiens SBS will work to finalize product development and begin clinical research to integrate these technologies into an expanded portfolio of DBS products within Medtronic’s Neuromodulation business.
“This acquisition broadens our neuroscience leadership position with innovative brain modulation technology that, along with our comprehensive portfolio of DBS solutions, may one day transform the way physicians are able to treat patients with neurodegenerative diseases like Parkinson’s disease and essential tremor,” said Lothar Krinke, Ph.D., vice president and general manager of the Brain Modulation business at Medtronic.
“Since 2011, Sapiens SBS employees have worked tirelessly to develop an advanced deep brain stimulation system,” said Jan Keltjens, chief executive officer at Sapiens SBS. “We are excited to join Medtronic, and look forward to collectively working to bring this and other novel technologies and therapies to neuromodulation patients worldwide that could benefit from them.”
Medtronic developed and leads the field of neuromodulation, the targeted and regulated delivery of electrical pulses and pharmaceuticals to specific sites in the nervous system. The company’s Neuromodulation business includes implantable neurostimulation and targeted drug delivery systems for the management of chronic pain, common movement disorders, spasticity and urologic and gastrointestinal disorders. Medtronic helped pioneer DBS, and more than 115,000 patients worldwide have received Medtronic DBS Therapy, which is approved in many locations around the world, including Europe and the United States, for the treatment of the disabling symptoms of essential tremor, advanced Parkinson’s disease and chronic intractable primary dystonia, for which approval in the United States is under a Humanitarian Device Exemption (HDE). In Europe, Canada and Australia, DBS therapy is approved for the treatment of refractory epilepsy. DBS therapy is also approved for the treatment of severe, treatment-resistant obsessive-compulsive disorder in the European Union and Australia, and in the United States under an HDE.
The transaction is expected to meet Medtronic’s long-term financial metrics and does not impact fiscal year 2015 earnings guidance.