St. Jude Medical (STJ) announced it has acquired Nanostim, Inc., a California-based early-stage medical device company focused on leadless pacemaker technology, for $123.5 million. The startup could stand to gain up to an additional $65 million if it meets certain milestones. This deal culminates a partnership that began on May 3, 2011, when STJ decided to begin investing in Nanostim.
STJ claims this adds the first and only leadless pacemaker to its portfolio, which may very well be a boon for the company, as Nanostim recently received a CE Mark for the technology and Cowen upgraded STJ from market underperform to perform. It also recently received conditional IDE approval for a pivotal clinical trial in the U.S.
The Nanostim technology is less than 10 percent of the size of typical pacemakers, has a nine-year 100 percent lifespan and doesn’t require surgeons to create a pocket to insert the pacemaker and leads in, according to STJ. Without the leads, it improves patient comfort, may remove the need for a patient’s restricted activity and reduce surgical complications. According to a press release, the STJ Medical Merlin Programmer supports the device. (Click here to watch a video showing how the technology works.)
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Nanostim had WSGR as its counsel. Merrill Lynch and Gibson, Dunn and Crutcher LLC advised STJ. Nanostim is also backed by InterWest Partners, US Venture Partners, Emergent Medical Partners and Life Science Angels.
