Analyst: AtriCure among most likely medical device acquisition targets

Atrial fibrillation device company AtriCure (Nasdaq:ATRC) is among five medical companies most likely to be targeted for an acquisition in the next year, according to a new analyst report.

In addition to Cincinnati-area AtriCure, the other device companies identified by Canaccord Genuity analyst Jason Mills as likely near-term acquisition targets were: HeartWare, Spectranetics, Thoratec and Volcano, Forbes reported.

Here’s what Mills said about AtriCure:

We like the company’s leadership position in the surgical atrial fibrillation market currently, and we also favor the company’s new product and clinical trial pipeline. Both make us optimistic the company can produce double-digit growth for awhile. We also see ATRC as a potential take-out candidate over the next 12-18 months.

That fits exactly with what MedCity News reported last month: That medical device giants looking to boost their atrial fibrillation (AF) product portfolios would do well to take a long, hard look at AtriCure.

AtriCure appears likely to be the first company to obtain a label for the surgical treatment of AF from the U.S. Food and Drug Administration, and that could spark lots of interest from huge device firms like Medtronic (NYSE:MDT), St. Jude Medical (NYSE:STJ) and Johnson & Johnson (NYSE:JNJ).

“A-fib is a big market opportunity and a huge unmet need,”Matt Dolan, an analyst with Roth Capital Partners, said last month. “It’s an area of cardiovascular care that a lot of the big players are interested in.”

AtriCure is in the midst of clinical trials for a “hybrid” AF procedure that combines catheter ablation with a technique that involves ablation via three small incisions between the ribs on each side of the heart. By investigating different techniques using its surgical devices, AtriCure may be positioning itself to control a larger share of the market once it obtains the necessary regulatory clearances.

If the Cincinnati company continues to make clinical progress, market chatter about an acquisition by a big device maker will only heat up.