Medtronic Acquires TransVascular Inc.

NEW YORK (Reuters) – Medtronic Inc., a medical device company, on Monday said it has bought TransVascular Inc., a small privately held company that makes a catheter system for vascular procedures and possible futures uses in gene therapy.

Medtronic, which makes implantable heart defibrillators and insulin pumps, said it offered stock for the assets, but declined to specify the financial terms.

“This is consistent with our belief that devices and biologics will come together,” said Medtronic spokesman Rob Clark, calling TransVascular’s catheter an “extremely precise” delivery device.

The CrossPoint TransAccess Catheter System uses ultrasound imaging and a needle delivery system to allow surgeons access to precise locations throughout the circulatory system, Medtronic said.

It has been approved for use within the veins and arteries, but is not approved yet for heart procedures.

But Medtronic is banking on future regulatory approval for uses such as delivering stem cells to repair damaged heart issue. The Minneapolis-based company also said that, based on early testing, TransVascular’s catheter system could one day be approved for use as a gene and drug delivery system for treating a variety of diseases and conditions.

“The device shows it’s got a tremendous amount of promise in the gene and cell delivery area,” Clark said.

He cautioned that testing for such future uses was still at a very preliminary stage. It is not clear when Medtronic might reap the benefits of the acquisition.

Medtronic shares edged down 21 cents to $51.84 early Monday afternoon on the New York Stock Exchange.