Volcano To Acquire Privately-Held AtheroMed - Quick Facts

(RTTNews) - Volcano Corp. (VOLC) announced that it has signed an agreement to acquire AtheroMed, Inc., a privately-held company that has developed the Phoenix Atherectomy System used in the treatment of peripheral artery disease or PAD.

Under terms of the agreement, Volcano said it will pay $115.0 million in cash at closing, which is expected to occur in the current quarter.

In addition, Volcano will make a $15 million milestone payment if a Phoenix device currently before the FDA receives clearance by November 15, 2014. This application covers design for manufacturing improvements to the currently approved device. In addition, the agreement calls for potential future revenue-based milestone payments by Volcano to AtheroMed.

Volcano noted that the Phoenix, which received 510(k) clearance in January 2014 and has a CE Mark, is a peripheral atherectomy system that has been designed to provide physicians with a safe, versatile, easy to use primary therapy for treating PAD to restore blood flow to the ankle and foot.