📜 Post with us on Reddit
📝 Create a new article
🏭 Create a company page
🇬🇧 - in English
🇫🇷 - en Français (FR)
🇵🇹 - em Português (PT)
🇩🇪 - in Deutsch (DE)
🇯🇵 - 日本語で (JA)
Sponsored articles

You can edit almost every page by Creating an account. Otherwise, see the FAQ.

Acquisition of St. Jude Medical by Abbott Laboratories

From EverybodyWiki Bios & Wiki


Acquisition of St. Jude Medical by Abbott Laboratories
InitiatorAbbott Laboratories
TargetSt. Jude Medical
Cost$25 billion
InitiatedApril 30, 2016; 8 years ago (2016-04-30)
CompletedJanuary 4, 2017; 7 years ago (2017-01-04)

St. Jude Medical was acquired Abbott Laboratories in 2017. by the way, Abbott Laboratories announced it would acquire St. Jude Medical for $25 billion ($46.75 in cash & 0.8708 shares of Abbott common stock, equating to an approximate value of $85 per share) In late April 2016.[1][2]

Background[edit]

Main article: St. Jude Medical

St. Jude Medical was founded in 1976 to further develop bi-leaflet artificial heart valves, which were originally created in 1972 at the University of Minnesota.[3][4] St. Jude Medical's bi-leaflet valve was developed in large part by Dr. Demetre Nicoloff of the University of Minnesota and St. Jude Medical employee Don Hanson.[4]

Company founder Manny Villafana took St. Jude Medical public In February 1977.[3] In October of that year, Dr. Nicoloff implanted the company's first artificial heart valve in a human patient.[4] St. Jude Medical's new heart valve was coated in pyrolytic carbon, which helped the valve prevent blood clotting.[3][4]

St. Jude Medical founding chief operating officer LaVerne Rees became chief executive officer in 1981.[5] Shortly after his appointment as St. Jude Medical CEO, Rees directed the company to begin development of its own carbon coating.[3] This decision led to a legal battle with CarboMedics, the sole supplier of carbon coating for the company's heart valves.[6] The St. Jude Medical board reassigned Rees in late 1984 after the legal dispute continued.[3][7]

In 1985, Lawrence Lehmkuhl replaced Rees as president and CEO of St. Jude Medical.[8] Lehmkuhl had previously served as a division president at American Hospital Supply Corporation.[8] Shortly after the appointment, St. Jude Medical settled its lawsuit with CarboMedics.[9] The two companies also entered into an agreement that allowed St. Jude Medical to continue developing and producing limited quantities of its own carbon coating.[3]

In 1986, the first St. Jude Medical heart valve created with the company's own carbon coating technology was implanted into a human in Germany.[3] Later that year, St. Jude Medical expanded into tissue heart valves with its acquisition of BioImplant.[3][10]

Pre-acquisition[edit]

The company established its International Division, located in Brussels, Belgium, in 1990. In April 1991, St. Jude Medical engaged in a joint venture with Hancock Jaffe Laboratories to create Heart Valve Company.[11][12] The joint venture was formed to design and market new tissue heart valves for the American market.[11] The first Heart Valve Company tissue heart valve was implanted in a human patient in 1994.[11]

In March 1993, Ronald Matricaria, a former president of Eli Lilly & Company's North American division, replaced Lehmkuhl as president and CEO of St. Jude Medical.[13] Lehmkuhl, who had presided over a ninefold increase in annual sales during his tenure as CEO, was named chairman of the St. Jude Medical board.[13][14]

Matricaria pushed for increasing diversification and expanded St. Jude Medical's acquisition hunt.[3] In June 1994, the company announced that it would acquire the Pacesetter, Inc., the heart pacemaker division of Siemens AG, for $500 million.[15] At the time of its acquisition by St. Jude Medical, Pacesetter was the second largest pacemaker manufacturer worldwide.[15]

First acquisition[edit]

In January 1996, St. Jude Medical further diversified its business when it acquired Minnetonka, Minnesota-based Daig Corporation for $425 million.[16] Daig Corporation manufactured cardiac catheters for diagnostic and therapeutic uses.[16] Also in January of that year, St. Jude Medical became the sole owner of Heart Valve Company when it purchased Hancock Jaffe Laboratories' 50% share in the joint venture.[16] St. Jude Medical acquired Biocor Industria, a Brazilian manufacturer of tissue heart valves, in September 1996.[17]

In 1997, St. Jude Medical acquired Ventritex, a Sunnyvale, California-based manufacturer of implantable cardioverter-defibrillators for $352 million.[18] At the time of its acquisition, Ventritex was the third-largest manufacturer of defibrillators.[18]

In February 1999, St. Jude Medical acquired Tyco International's Angio-Seal business.[19] Angio-Seal manufactured collagen-based plugs to close arterial holes made during arterial catheter procedures.[19] Matricaria stepped down as St. Jude Medical CEO in March 1999.[20] He was replaced by Terry Shepherd, who had served as president of St. Jude Medical's heart valve business since 1994.[20] Matricaria retained chairmanship of the St. Jude Medical board.[20]

The company's stock had increased 277% during his tenure as CEO.[21] St. Jude Medical COO Daniel Starks was appointed to replace Shepherd as the company's CEO.[21] Starks had previously served as chief executive officer of Daig Corporation from 1986 to 1996, when St. Jude Medical acquired the company.[21] Starks had been retained by St. Jude Medical and had served as company chief operating officer since 2001.[21]

In January 2005, St. Jude Medical acquired Saint Paul, Minnesota-based Endocardial Solutions for $272 million.[22] Endocardial Solutions manufactured diagnostic and therapeutic devices used to treat atrial fibrillation.[22] Later that year the company acquired Plano, Texas-based Advanced Neuromodulation Systems for $1.3 billion.[23] At the time of its acquisition, Advanced Neuromodulation Systems was the second-largest supplier of devices that use electrotherapy to treat chronic pain and nerve disorders.[23][24]

In 2008, St. Jude Medical acquired MediGuide, an Israeli company that developed technology that uses tiny sensors to locate medical devices inside of a patient's body and increase the amount of information available to a doctor during medical procedures.[25] St. Jude Medical acquired AGA Medical for $1.3 billion in October 2010.[10] AGA Medical was a Plymouth, Minnesota-based company that manufactured products that treat heart defects, including plugs and patches that fix holes and other cardiac defects.[26][27] In 2010 the company also acquired LightLab Imaging, a company that developed optical coherence tomography technology that helps doctors treat heart disease.[28]

In 2010, St. Jude Medical invested in an option to acquire CardioMEMS Inc., a medical device company that developed a wireless sensing and communication technology to monitor pulmonary artery pressure (PAP) in heart failure patients. CardioMEMS Inc. was acquired by St. Jude Medical in May 2014.[29][30]

In August 2012, St. Jude Medical reorganized its business operations.[31] The company folded its four product divisions into two operating units: the implantable electronic systems division; and the cardiovascular and ablation technologies division.[31] The company also centralized other functions including the marketing, information technology and legal departments.[31] St. Jude Medical's reorganization coincided with layoffs of about 5% of the company's global workforce.[31]

In 2013, St. Jude Medical acquired Endosense, a Swiss company that developed a catheter that measures the force a doctor places on a patient's heart wall during a catheter ablation procedure.[32] St. Jude Medical paid $330 million for the company.[32]

In June 2013, St. Jude Medical entered into a series of agreements under which the company made a $40 million equity investment in Spinal Modulation, Inc.[33] In May 2015, the company completed the acquisition of Spinal Modulation, developer of the Axium Neurostimulator System.[34]

St. Jude Medical acquired Nanostim Inc., a Sunnyvale, California-based privately owned developer of miniaturized, leadless pacemakers, for $123.5 million in October 2013.[35] The acquisition followed the approval of Nanostim's leadless pacemaker by the European Union.[35] St. Jude Medical had secured the exclusive right to acquire Nanostim with a May 2011 investment in the start-up.[36]

Later acquisition[edit]

St. Jude Medical continued the restructuring it started in 2014 with its consolidation of the company's two operating units—the implantable electronic systems and the cardiovascular and ablation technologies units—into single research and development division.[37] The company also consolidated its worldwide manufacturing and supply chain operations into a second division.[37]

In July 2015, the company announced its intention to acquire heart-device manufacturer Thoratec Corporation for $3.4 billion.[38] The acquisition was completed in October 2015.[39]

In September 2015, St. Jude Medical announced that Daniel Starks would retire as chairman, president, and chief executive officer. On January 1, 2016, Michael T. Rousseau succeeded Starks as president, CEO and a member of the St. Jude Medical Board of Directors. Starks would remain executive chairman of the board of directors.[40]

Acquisition[edit]

In late April 2016, Abbott Laboratories announced it would acquire St. Jude Medical for $25 billion ($46.75 in cash & 0.8708 shares of Abbott common stock, equating to an approximate value of $85 per share).[1][2]

On January 5, 2017, Abbott announced that it had completed its $25 billion acquisition of St. Jude Medical.

Acquisition history[edit]

The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):

St. Jude Medical 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

St. Jude Medical
(Est 1976)

 
 
 
 
 

Pacesetter, Inc.
(Acq 1994)

 
 
 
 
 

Daig Corporation
(Acq 1996)

 
 
 
 
 

Heart Valve Company
(Acq remaining 50% from joint venture with Hancock Jaffe Laboratories' 1996)

 
 
 
 
 

Biocor Industria
(Acq 1996)

 
 
 
 
 

Ventritex
(Acq 1997)

 
 
 
 
 

Tyco International
(Angio-Seal div, Acq 1999)

 
 
 
 
 

Endocardial Solutions
(Acq 2005)

 
 
 
 
 

Advanced Neuromodulation Systems
(Acq 2005)

 
 
 
 
 

MediGuide
(Acq 2008)

 
 
 
 
 

AGA Medical
(Acq 2010)

 
 
 
 
 

LightLab Imaging
(Acq 2010)

 
 
 
 
 

CardioMEMS Inc.
(Acq 2014)

 
 
 
 
 

Endosense
(Acq 2013)

 
 
 
 
 

Spinal Modulation
(Acq 2015)

 
 
 
 
 

Nanostim Inc
(Acq 2013)

 
 
 
Thoratec Corporation (Acq 2015)
 

Apica Cardiovascular Limited
(Acq 2014)

 
 
 

Levitronix
(Acq 2011)

 
 
 

Getinge Group
(Heart pump technology div, Acq 2014)

 
 
 

Thermo Cardiosystems
(Acq 2010)

 
 
 
 
 
 

References[edit]

  1. ↑ 1.0 1.1 https://www.bloomberg.com/news/articles/2016-04-28/abbott-agrees-to-buy-st-jude-medical-for-25-billion
  2. ↑ 2.0 2.1 Cite error: Invalid <ref> tag; no text was provided for refs named ReferenceA
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 "St. Jude Medical, Inc". International Directory of Company Histories. Retrieved 6 March 2014.
  4. ↑ 4.0 4.1 4.2 4.3 Terry Fiedler; Staff Writer (3 October 2002). "A perfectible heart; St. Jude Medical's mechanical heart valve was still the market standard 25 years after a Minnesota woman received the first implant in surgery at the U of M.". Star Tribune (Mpls.-St. Paul).
  5. ↑ "ST. JUDE MEDICAL ELECTS REES CHIEF, HENDRICKSON CHAIRMAN". The Wall Street Journal. 9 September 1981.
  6. ↑ "St. Jude Medical Wins Court Order for Supply Of Heart-Valve Parts". The Wall Street Journal. 12 October 1984.
  7. ↑ Richard Gibson Staff Reporter of The Wall Street Journal (14 January 1985). "St. Jude Medical, Shelves Nearly Bare, Tries to Attract a New Chief Executive". The Wall Street Journal.
  8. ↑ 8.0 8.1 "St. Jude Medical Picks Lawrence Lehmkuhl As President and Chief". The Wall Street Journal. 12 February 1985.
  9. ↑ Richard Gibson (19 September 1985). "Heart Valve Companies Are Ready for Battle As St. Jude Medical Gets Back in the Market". The Wall Street Journal.
  10. ↑ 10.0 10.1 "St. Jude Medical, Inc". Hoovers. Retrieved 14 April 2014.
  11. ↑ 11.0 11.1 11.2 "St. Jude bioprosthetic valve implanted". Reuters News. 30 March 1994.
  12. ↑ Edward A. Wyatt (31 August 1992). "The Mugging of St. Jude --- Why the Street's Wrong in Roughing Up the Stock". Barron's.
  13. ↑ 13.0 13.1 MILT FREUDENHEIM (March 23, 1993). "COMPANY NEWS; Lilly Executive Named Chief of St. Jude Medical". New York Times.
  14. ↑ Steve Gross; Staff Writer (18 March 1993). "Lehmkuhl named St. Jude chairman, Matricaria new president and CEO // New chief executive is a former head of Eli Lilly pacemaker subsidiary in Roseville". Star-Tribune Newspaper of the Twin Cities Mpls.-St. Paul.
  15. ↑ 15.0 15.1 Steve Alexander; Staff Writer (29 June 1994). "The wait is over: St. Jude announces big acquisition // Fridley firm plans to buy pacemaker operations of Siemens AG for $500 million cash". Star-Tribune Newspaper of the Twin Cities Mpls.-St. Paul.
  16. ↑ 16.0 16.1 16.2 "Hancock Jaffe Sells Heart Valve Stake". Los Angeles Times. January 7, 1996.
  17. ↑ "St. Jude Medical Acquires Assets". The Wall Street Journal. 24 September 1996.
  18. ↑ 18.0 18.1 Terry Fiedler; Staff Writer (1 April 1997). "St. Jude Medical drops its acquisition price for California-based Ventritex // Stock deal worth $352 million; acquiring defibrillator firm a good fit, giving St. Jude a presence in burgeoning market". Star-Tribune Newspaper of the Twin Cities Mpls.-St. Paul.
  19. ↑ 19.0 19.1 Terry Fiedler; Staff Writer (6 February 1999). "St. Jude buys vascular-seal company // $167 million deal makes it leader in fast-growing market". Star-Tribune Newspaper of the Twin Cities Mpls.-St. Paul.
  20. ↑ 20.0 20.1 20.2 Thomas M. Burton Staff Reporter of The Wall Street Journal (3 March 1999). "St. Jude Medical's CEO to Step Down In the Wake of Disappointing Results". The Wall Street Journal.
  21. ↑ 21.0 21.1 21.2 21.3 Janet Moore; Staff Writer (11 December 2003). "A STEADY PULSE; St. Jude Medical's CEO is retiring, but all bets are on a smooth transition". Star-Tribune.
  22. ↑ 22.0 22.1 Janet Moore; Staff Writer (14 January 2005). "St. Jude completes Endocardial acquisition". Star-Tribune.
  23. ↑ 23.0 23.1 Barnaby J. Feder (13 January 2006). "With the Spotlight on a Rival, St. Jude Medical Shines". The New York Times.
  24. ↑ "U.S. heart-device maker to acquire smaller rival". The New York Times. 18 October 2005.
  25. ↑ Jon Kamp (23 December 2008). "Corporate News: St. Jude Is Set to Pay $533 Million For Two Medical-Tech Companies". The Wall Street Journal.
  26. ↑ CHEN MAY YEE; STAFF WRITER (19 October 2010). "ST. JUDE BUYS AGA MEDICAL // $1.1 billion deal is expected to give St. Jude a lead in treating structural heart disease". STAR TRIBUNE (Mpls.-St. Paul).
  27. ↑ Jon Kamp (19 October 2010). "St. Jude in Deal for AGA Medical". The Wall Street Journal Online.
  28. ↑ JANET MOORE; STAFF WRITER (20 May 2010). "St. Jude to spend $90 million to buy imaging company". STAR TRIBUNE (Mpls.-St. Paul).
  29. ↑ David Morgan (8 December 2011). "FDA panel votes against CardioMEMS device". Reuters. Retrieved 25 September 2014.
  30. ↑ "St. Jude Medical Completes Acquisition of CardioMEMS". 2 June 2014. Retrieved 25 September 2014.
  31. ↑ 31.0 31.1 31.2 31.3 James Walsh (31 August 2012). "St. Jude lays off 300, reorganizes // Analysts saw a connection to what St. Jude will have to pay in a new medical device tax. Officials said the goals are broader". STAR TRIBUNE (Mpls.-St. Paul).
  32. ↑ 32.0 32.1 PATRICK KENNEDY (20 August 2013). "St. Jude buys Swiss med tech company // St. Jude will pay $170 million for Endosense and could pay more if performance targets are met". STAR TRIBUNE (Mpls.-St. Paul).
  33. ↑ Tess Stynes (April 20, 2015). "St. Jude Exercises Option to Acquire Spinal Modulation". Wall Street Journal. Retrieved December 30, 2015.
  34. ↑ "St. Jude Medical Completes Acquisition of Spinal Modulation". HospiMedica International. May 17, 2015. Retrieved December 30, 2015.
  35. ↑ 35.0 35.1 Cortez, Michelle (14 October 2013). "St. Jude Buys Nanostim as Pacemaker Gets EU Approval". Bloomberg News. Retrieved 17 May 2014.
  36. ↑ Katharine Grayson. "St. Jude backs lead-less pacemaker startup Nanostim". Minneapolis/St. Paul Business Journal. Retrieved 17 May 2014.
  37. ↑ 37.0 37.1 James Walsh. "St. Jude reorganizes its leadership". Star Tribune. Retrieved 17 May 2014.
  38. ↑ Harrison, Crayton (22 July 2015). "St. Jude to Acquire Implant Maker Thoratec for $3.4 Billion". Bloomberg.
  39. ↑ "St. Jude Medical Completes Acquisition of Thoratec". Business Wire. October 8, 2015.
  40. ↑ "St. Jude Medical Announces Leadership Transition Plan". BusinessWire. September 9, 2015. Retrieved December 30, 2015.



This article "Acquisition of St. Jude Medical by Abbott Laboratories" is from Wikipedia. The list of its authors can be seen in its historical and/or the page Edithistory:Acquisition of St. Jude Medical by Abbott Laboratories. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.


Retrieved from "https://en.everybodywiki.com/index.php?title=Acquisition_of_St._Jude_Medical_by_Abbott_Laboratories&oldid=1764054"
License CC BY-SA 3.0
Powered by MediaWiki
Powered by Semantic MediaWiki