Spectranetics buys ‘’Upstream Peripheral Technologies Ltd’’ for $5.5 million

Spectranetics Corp. on Monday announced it bought the assets of the Israeli company, Upstream Peripheral Technologies Ltd., for $5.5 million plus additional payments that depend on revenue, technology transfer and other milestones.

The Colorado Springs-based medical laser manufacturer acquired product lines that were developed to reduce radiation exposure to both doctors and patients when lasers are used to clear blockages in leg arteries and to reduce the time needed to clear those blockages. The products have been cleared by the Food and Drug Administration and are expected to be launched in the U.S. and Europe next month. Spectranetics said it expects to generate positive cash flow from the transaction this year.

« This acquisition is a move consistent with our strategy to treat challenging » blockages in aerteries, Spectranetics CEO Scott Drake said Monday in a press release on the transaction. « The technologies are complementary to our vascular portfolio. »

Under the deal, Upstream can earn an additional $1.5 million once the products are successfully transferred to Spectranetics and another $500,000 when the first products included in the deal are manufactured by Spectranetics and sold. The deal also includes $1 million in payments to Upstream when some patent-related milestones are met plus one-third of revenues from the products through 2016.

« We are excited to see our innovations in the hands of physicians to improve patients’ lives. With the strength of its sales force and the strategic focus on lower extremity procedures, Spectranetics is the perfect acquirer of these technologies, » Abi Zakai, Upstream’s chairman, said in the press release.

Upstream is based in Caesarea, Israel, and is an affiliate of ARAN Research Development Prototypes Ltd. Spectranetics employs more than 500 worldwide to manufacture and sell medical lasers, catheters and related equipment to clear blockages in coronary and leg arteries and remove infected pacemaker leads; the company’s products were expected to generate nearly $140 million in revenue last year.

Company shares hit a five-year high of $15.33 last week and fell 27 cents to $14.78 in light trading Monday on the Nasdaq Stock Market.
January 07, 2013 10:10 AM




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