UK-based firm LivaNova has signed an agreement to purchase the remaining outstanding shares in US-based ImThera Medical for around $225m.
The agreement will see an up-front payment of about $78m and the remaining amount as scheduled transactions at regulatory and sales milestones.
ImThera primarily focuses on neurostimulation products for the treatment of obstructive sleep apnea (OSA).
The firm currently offers an implantable device designed to activate various tongue muscles through the hypoglossal nerve for opening the airway during sleep.
The device is complementary to LivaNova’s Neuromodulation business and the firm plans to optimise the associated technology for utilisation in its overall platform.
LivaNova CEO Damien McDonald said: “In the near term, we will focus on expanding ImThera’s current commercial presence in the European market, while advancing enrolment in a US Food and Drug Administration (FDA) pivotal trial.
“With our strong commercial capabilities and robust manufacturing, we look forward to bringing this innovative technology to the large patient population that has been unsuccessful with other treatments, allowing them to improve their quality of life.”
With CE-Mark obtained in 2012, ImThera’s device is indicated for the treatment of moderate to severe OSA in patients who do not opt for continuous positive airway pressure (CPAP) therapy.
ImThera Medical founder, president and CEO Marcelo Lima said: “This acquisition will benefit healthcare providers, shareholders and most of all, the patients who are at the heart of everything we do.
“We welcome the opportunity to become part of the LivaNova family and look forward to the continued evolution of our product.”
The transaction is subject to customary closing conditions and is scheduled to close early next year.
