Medical device co superDimension in acquisition talks for $300m

The pulmonary device developer is believed to be in advanced talks with Covidien.

Pulmonary devices maker superDimension Inc. is in advanced talks with a major medical devices company to be acquired for over $300 million. superDimension, founded 16 years ago, has $30 million in annual sales.

It is believed that the buyer is Covidien plc (NYSE: COV), a spin off of Tyco International Ltd. (NYSE: TYC), which invested in superDimension's last financing round.

superDimension has raised $120 million from OrbiMed Advisors LLC, Pitango Venture Capital, Medica Venture Partner, Gemini Israel Funds, Concord Ventures, Evergreen Venture Partners, Niztanim, and Oxford Bioscience, as well as from strategic investors Covidien Ventures, Boston Scientific Inc. (NYSE: BSX), and Pfizer Inc. (NYSE: PFE; LSE: PFZ). The amount of money raised raises questions whether the company can be sold for an amount justifying the investment, but the company's sales and positive cash flow nevertheless suggest that investors can make at least a two-fold return on investment.

superDimesion's Electromagnetic Navigation Bronchoscopy receives full insurance indemnification for procedures. The device is mostly used to diagnose lung cancer. The company was founded in 1995 on the basis of navigation technology originally developed for planes, and subsequently used in toys. The company adapted it for navigation within the body, developing an endoscope for the bronchial tubes, for which there is no other available solution.

The system includes a sensor fitted at the tip of a catheter, which sends signals to three magnets placed on the patient's chest, and a magnetic sheet on which the patient lies. This creates a kind of GPS system for positioning the sensor within the lung. The device can be precisely sent to the suspected area, such as a tumor, take a biopsy, and mark the spot for subsequent precision radiation to reduce damage to surrounding healthy tissue.

Headquartered in Minneapolis, superDimension has 210 employees, including 23 in Herzliya. It also has an office in Dusseldorf, Germany.

Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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