Japanese firm Terumo has entered an agreement to acquire US-based Sequent Medical for $280m.
Subject to regulatory approval, the potential acquisition is expected to be completed in July or August.
The $280m will be paid after completion of the acquisition, while an additional $100m will be paid based on specific development or commercial milestone achievements.
The acquisition of Sequent, will enhance Terumo‘s footprint in the neurovascular device market in the US, which is projected to increase.
Terumo’s entry in the neurovascular device market was marked by its acquisition of MicroVention in 2006, with the company then developing the neurovascular product portfolio featuring embolisation coils to treat aneurysms, and related interventional devices and stents.
The new acquisition will add Sequent-developed WEB Aneurysm Embolization System to Terumo’s product portfolio.
It is based on Sequent’s patented MicroBraid technology and looks similiar to a dense mesh composed of large number of extremely fine wires.
MicroBraid technology allows a blend of wire diameters or materials to provide a customised balance of compliance, porosity and profile across device sizes.
The WEB System is designed to be used for the endovascular embolisation of ruptured and unruptured intracranial aneurysms and other neurovascular abnormalities such as arteriovenous fistulae (AVF).
The device allows physicians to treat wide-neck bifurcation aneurysm with an intrasaccular method, while leveraging on established biomaterials.
Terumo and MicroVention are planning to secure the US Food and Drug Administration (FDA) approval for the WEB System as they anticipate that the product addition will bolster their presence in the neurovascular device market.
Image: Application of Sequent’s Web System. Photo: courtesy of Terumo Corporation.