Tyco's Valleylab Acquires Vivant Medical In Deal Worth Up To $101M
By Lisa Lacy
Mountain View, Calif. / July 6, 2005 / Tyco International Ltd. said Valleylab, a division in its health care segment, has acquired Vivant Medical Inc., a developer of microwave technology for the ablation of solid tumors, in a deal valued at $66 million in cash upfront and up to $35 million more in milestones.
Vivant is backed by $19.5 million, including $6.5 million in Series D financing in January 2004. The D round was led by new investor California Technology Ventures and also included existing shareholders Adams Street Partners, Johnson & Johnson Development Corp., Pacific Venture Group, Three Arch Partners and Thomas Fogarty, founder of Vivant.
Vivant's VivaWave Microwave Ablation System is indicated for soft tissue and has been in clinical applications since late 2004. Tyco expects to launch the product in 2006 pending Food and Drug Administration clearance, according to Marty Dauer, Tyco's senior director of financial communication.
"For Tyco, the important thing is purchasing a great technology far along on the development chain," Dauer said. "We expect a commercial release in the near future and it's the perfect complement to our radiofrequency ablation system, Cool-tip."
Cool-tip's radiofrequency and VivaWave's microwave energy are expected to give Tyco a broader range within tumor ablation. Dauer said Tyco "expects that different tumors and tissues will respond better to different types of energies."
For example, solid tumors such as liver cancer are expected to respond better to microwave energy.
The VivaWave Ablation System includes two styles of microwave probes: the VivaRing and the VivaTip. The VivaRing is designed to encircle a tumor during either a surgical or percutaneous procedure. The VivaTip employs a straight rigid shaft with a sharp tip that can also be placed either surgically or percutaneously, much like a biopsy needle. The microwave energy is radiated within a specific region around the distal end of the probe.
Dauer said Tyco will review Vivant's facility in Mountain View, Calif., over the course of a year. Valleylab is based in Boulder, Colo.
Vivant Chief Executive Rod Young will remain in a consulting capacity for several months; Vivant's 17 employees are now considered employees of Tyco Healthcare.
For more information, please visit Vivant’s web site.
7/6/2005
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