Covidien Announces Definitive Agreement to Acquire superDimension

Covidien (Dublin, Ireland) has agreed to buy invasive pulmonology systems maker superDimension (Herzliya, Israel) for about USD 300 million in cash, in a further effort to access the minimally invasive surgery (MIS) device market.

The acquisition gives Covidien access to the the superDimension iLogic System, which uses electromagnetic navigation bronchoscopy (ENB) to provide a minimally invasive option to treat lesions deep in the lungs, as well as mediastinal lymph nodes. Using a patient’s computerized tomography (CT) scan, a virtual three-dimensional (3D) bronchial tree is generated, which is continuously updated in synchrony with the navigation of a locatable guide (LG) tip towards the targeted position. Once at the target, the LG is removed and the guide catheter provides a channel for diagnostic treatment or therapeutic tools.

”Covidien’s strategy is to invest in clinically and economically relevant products and technologies which can meaningfully improve patient outcomes while reducing the overall cost of care,” said Bryan Hanson, president of surgical solutions at Covidien. “The acquisition of superDimension will position Covidien to continue its investment in meaningful innovation by delivering more comprehensive solutions in the evaluation and treatment of lung diseases.”

“We are very pleased that Covidien has elected to acquire superDimension,” said Daniel Sullivan, President and CEO if superDimension. “This partnership will immediately strengthen our worldwide commercial infrastructure, expanding the benefits of the iLogic System and electromagnetic navigation bronchoscopy to a wider patient population.”

superDimension did not start out as a biomed company, but as a toy manufacturer, designing games based on three dimensional (3D) tracking of objects using magnetic field generation and detection; sensors on the toys would communicate their position to a screen. The company then changed management and focus, migrated its product from a game into a cardiologic navigation system to help place stents in nephritic blood vessels. In mid-2002, the company developed a new business model, focusing on the then new field of invasive pulmonology.

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