In medical technology, much attention has been paid to the multi-million dollar market for stents that prop open clogged heart arteries. But until recently, little notice has been given to another promising market for stents -- those that clear arteries in the legs and other areas of the body, a condition called peripheral vascular disease.
On Monday, Medtronic Inc. made a significant leap into that space when it announced a $350 million deal to acquire a European company called Invatec and two affiliated firms.
Based in Brescia, Italy, privately held Invatec makes an array of stents, angioplasty balloons and other products. Invatec, which has $130 million in annual revenue, will be folded into Medtronic's $2.1 billion CardioVascular business, which now sells cardiac stents, heart valves and surgical equipment.
Invatec's products are widely used in Europe, but Medtronic will have to win regulatory approval before some of the newly acquired firm's devices are sold in the United States.
"It's not a huge acquisition, but Invatec has a very nice group of products, and it's a very innovative company," said Tim Nelson, an analyst with FAF Advisors in Minneapolis. Invatec's products "will really add some zest to the bag of the Medtronic vascular salesperson."
The peripheral vascular market is currently valued at $2 billion a year worldwide and is growing more than 10 percent annually. About 20 million people in the United States and western Europe suffer from the disease, which causes a narrowing of vessels that carry blood to the legs, arms, stomach or kidneys.
The condition causes pain, reduces mobility, inhibits wound healing and leads to roughly 250,000 amputations per year, Medtronic said.
Other companies certainly have noticed the potential for new treatments in the field, including C.R. Bard Inc., Boston Scientific Corp. and Abbott Laboratories, Nelson said.
