St. Jude Medical is spending $200 million for NeuroTherm, a specialist in spinal pain management.
By Patrick Kennedy patrick.kennedy@startribune.com
St. Jude Medical said Monday it will acquire NeuroTherm Inc., a specialist in therapies for back pain, for $200 million in cash.
The acquisition will add complementary products to St. Jude's existing chronic pain management portfolio, which contributes just a small amount of St. Jude's $5.5 billion in annual sales.
NeuroTherm will add just $10 million to $15 million to St. Jude's sales this year, will have a neutral effect on 2014 profits and be additive in 2015, St. Jude said.
NeuroTherm products use radio-frequency ablation to treat chronic spinal pain. The minimally invasive procedure uses pinpoint application of heat to destroy nerves in the neck and back that contribute to chronic pain.
"Neurotherm's radio-frequency ablation products are an ideal complement to St. Jude Medical's chronic pain portfolio, providing our global sales force with additional interventional pain therapies," Michael Rousseau, St. Jude's chief operating officer, said in a statement.
Rousseau noted that, following the acquisition, St. Jude will be the only firm to offer both a spinal cord stimulation device and the ablation process to people who are dealing with chronic back pain.
