NEW YORK, April 28, 2016 /PRNewswire/ -- While Abbott's announced purchase of St. Jude Medical will notably complement the company's valve repair and stent business, healthcare research firm Kalorama Information says the move also places Abbott more firmly into patient monitoring. Kalorama said that patient monitoring is one of the fastest growing device areas, with double-digit growth expected the next 5 years, according to its recent report, Advanced Remote Patient Monitoring. Abbott Laboratories agreed to acquire St. Jude Medical Inc. in a cash-and-stock deal valued at $25 billion that would create one of the leading makers of heart-related devices. Both boards have approved the deal but it will have to clear regulatory bodies. St. Jude Medical offers medical products in six major product segments ICD systems, atrial fibrillation, vascular, Pacemakers, Structural heart products.
"The purchase also puts Abbott into the top of cardiological diagnostics and generally as one of the top medical device companies," said Bruce Carlson, Publisher of Kalorama Information. "It's a branch-out a bit from diagnostics to monitoring, but a related field and complementary to the firm's stent and valve repair products."
Kalorama estimates Abbott paid four and one half times revenues for the St. Paul, Minn.-based company, and noted that the deal also provides needed momentum as the company's planned acquisition of Alere has slowed due to an investigation into foreign corruption over payments in Africa, Asia and Latin America. In terms of patient monitors, St. Jude offers the Confirm Implantable Cardiac Monitor (ICM) that consists of an implantable device and a handheld external device for event data storage. This system is a diagnostic tool for abnormal heart rhythms. The Accel and Promote Accel pacemaker devices were approved by the FDA in February 2010, and received CE Mark approval in 2009. The pacemakers use the company's InvisiLink Wireless Telemetry using a remote wand with the [email protected] transmitter and Merlin.net Patient Care Network (PCN), for daily remote monitoring and follow-up.
More products could be on the way, Carlson said. The company invests over a half million dollars in R&D activities each year. There are 910 patents in the U.S. database under the St Jude Medical name, 310 of which contain the term "monitoring." All of the company patents were issued between 1976 and 2015. Patented technologies include cardiovascular devices, implantables, sutures, fixation systems, and sensors.
Kalorama's report, Advanced Remote Patient Monitoring, 7th Edition, contains forecasts and market sizing for each segment of patient monitors. The report can be found at: http://www.kaloramainformation.com/redirect.asp?progid=88638&productid=9123949.
About Kalorama Information
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SOURCE Kalorama Information