Medtronic has announced that it has acquired combination product specialist Tyrx (Monmouth Junction, NJ) for $160 million. Tyrx, a spin-off from Rutgers University, was launched in 1998 to develop products to combat surgical-site infections linked to implanted medical devices. The company created an antibacterial envelope that fits around implants to curb the risk of infection. Following implantation, the device gradually releases its antibiotic payload over the course of a week to 10 days. Last year, the FDA approved the technology for use in a number of new applications, ranging from pacemakers to spinal cord neuromodulators.
In 2013, the company was bringing in about $20 million in annual revenue, which was more than double the figure from the previous year.
Its solid sales growth was supported by data showing the efficacy of its products in fighting infection. A Vanderbilt study indicated that the company's antibacterial envelope cut the risk of cardiovascular implantable electronic device infections by 87%. Such infections typically affect between 2 and 3% of pacemaker recipients.
Surgery always carries with it a risk of infection. Most patients, however, do not develop an infection but those that do often face significant health risks. For instance, a Mayo Clinic study found that patients with an infection following pacemaker implantation had a mortality rate nearly 20% higher than patients without infections. The company's products have proven effective in fighting so-called superbugs such as methicillin-resistant s. aureus.
According to a press release, Medtronic anticipates that the acquisition will have a neutral effect on its fiscal 2014 earnings.
Following the announcement on January 6, Medtronic's ticked up in mid-day trading, hovering around $59 per share, which is roughly 1.5% higher than its previous close.
The Aigis antibacterial envelope from Tyrx has proven to be effective in preventing implants following implantation of a number of medical devices.
