Edwards Lifesciences to Acquire Valtech Cardio

November 28, 2016—Edwards Lifesciences Corporation announced that it has agreed to acquire Valtech Cardio Ltd., a privately held company based in Israel and developer of the Cardioband system for transcatheter repair of the mitral and tricuspid valves.

Edwards advised that the Cardioband transseptal mitral repair system received European CE Mark approval in 2015. Valtech has also initiated a CE Mark trial for the tricuspid application of a similar version of this device, which is intended to reduce tricuspid regurgitation. The Cardioband system is not approved for sale in the United States.

The Cardioband system combines a reconstruction implant, similar to a surgical annuloplasty mitral valve repair device, with a transcatheter approach. The system utilizes a catheter inserted into the femoral vein and delivered through a transseptal approach across the septum of the heart. The direct annuloplasty system’s segmental deployment conforms to each patient's specific annular geometry, addressing the needs of patients with functional mitral regurgitation. 

According to Edwards, the purchase price of Valtech is $340 million in stock and cash at closing, with the potential for up to $350 million in additional prespecified, milestone-driven payments over the next 10 years. Before the close of the transaction, which remains subject to customary closing conditions and is expected in early 2017, Valtech will spin off its early-stage transseptal mitral valve replacement technology program. Edwards will retain an option to acquire that program and its associated intellectual property. 

The company also announced that the Edwards Board of Directors has authorized a new share repurchase program to acquire up to an additional $1 billion of the company's outstanding common shares. Edwards also has $277 million remaining of its current $750 million share repurchase program, which was authorized in July 2014. This authorization enables the company to repurchase shares to offset the dilution of the Valtech transaction, and continue executing its share repurchase strategies.