The consensus is that none of the other medical device bigwigs will try and steal heart pump maker Thoratec from the clutches of St. Jude Medical during the $3.4 billion deal's 30-day "go-shop" period.
St. Jude Medical announced its intention to acquire Thoratec, the maker of ventricular assist devices that pump the blood of patients awaiting a heart transplant, for $3.4 billion. Its stock price is up 2.5% on the news.
Industry bigwig St. Jude Medical is discussing a buyout of specialist Thoratec, a maker of left ventricular assist devices, which give heart failure patients awaiting a donated heart a bridge to organ transplantation by pumping their blood in the meantime. Thoratec stock is up 18% to around $58 on the rumor, as of 3 p.m.
Thoratec received a CE mark for its HeartMate Percutaneous Heart Pump, following a 30-person clinical trial.
Thoratec touted clinical trial data presented at an International Society for Heart and Lung Transplantation meeting in Nice, France, showing that advanced heart failure patients who receive ambulatory--or outpatient--care are better off using its HeartMate II left ventricular assist device than receiving optimal medical management.
Thoratec shed almost one-third of its value after reporting abysmal second quarter earnings. The advanced heart failure device company attributed most of the miss to a New England Journal of Medicine article that came out late last year and linked the company's HeartMate II left ventricular assist device to an increasing rate of pump thrombosis.
Thanks to its banner HeartMate device, Thoratec handed in another quarter of solid revenue growth, but a spike in costs kept its net income from moving upward.
A formal recall of Thoratec's backup power device used with its HeartMate pumps is now in place, and the FDA slapped a Class I status on the effort, its most serious designation, which means the issue can result in serious injury or death.
Four patients died and 5 others faced brief scares due to problems involving a backup controller used with Thoratec's HeartMate pumps. The company issued a safety alert to hospitals detailing the issue.
Thoratec's revenue stagnated at the end of 2013, but net income grew substantially, thanks in part to the effects of a tax credit. The California company's HeartMate pumps continue to provide the bulk of its revenue.