Aran R&D subsidiary Upstream Peripheral has developed devices to minimize radiation exposure in vascular procedures.
Aran R&D (1982) Ltd. (TASE:ARAN) today announced that medical device company Spectranetics Corp. (Nasdaq: SPNC) has agreed to acquire the assets of its subsidiary Upstream Peripheral Technologies, Ltd., for up to $35.5 million. Spectranetics will make an up-front payment of $5.5 million with additional payments tied to revenue, manufacturing transfer, and other milestones.
Aran owns 58% of Upstream, which has already received US Food and Drug Administration (FDA) clearance and CE certificates for several products that were developed to minimize radiation exposure in peripheral vascular procedures generally and decrease procedure time in retrograde access procedures. Aran has only invested $500,000 in Upstream and Aran's R&D expenses in the first nine months of 2012 totaled $175,000.
The products will be launched in the US and Europe in February 2013.
Aran is neither a classic medical device start up or investment company but is a veteran firm focusing on engineering and development planning services in a range of areas such as agriculture, printing, and communications as well as medical devices.
Spectranetics president and CEO Scott Drake said, "This acquisition is a move consistent with our strategy to treat challenging endovascular lesions. The technologies are complementary to our vascular portfolio and enable us to leverage our current call points."
Upstream chairman Abi Zakai said, "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."
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
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