Restore Medical, Inc. (NASD: REST) announced that they have signed an agreement with Medtronic, Inc. (NYSE: MDT) which implies that Medtronic will pay $1.60 per share in cash for each share of Restore Medical stock. With the additional payment of Restore Medical debt, the transaction is worth approximately $29 million, and – although the full terms of the agreement haven’t been approved by Restore Medical shareholders – the transaction is expected to close within the next 90 days. Restore Medical’s stock rose 27.91% during Tuesday’s trading.
Restore Medical’s Pillar Palatal Implant System is a state of the art, minimally invasive, and implantable medical device used to treat the soft palate component of sleep breathing disorders, which includes mild to moderate obstructive sleep apnea (OSA), and snoring. The Pillar System was approved by the U.S. Food & Drug Administration and now is a perfect complement to Medtronic’s current family of market-leading ENT products that treat upper airway obstructions, focusing primarily on sinuses and tonsils/adenoids. These two systems give doctor’s an alternative option for patients who suffer from diverse breathing disorders.
“This acquisition will help deliver new growth for our ENT business by providing Medtronic with a proven office-based procedure in a very fast growing segment of the sleep market. Medtronic can quickly leverage its distribution and marketing strengths to improve patient and surgeon access to this minimally invasive therapy,” stated Bob Blankemeyer, President of the ENT business at Medtronic.
Bob Paulson, President and CEO of Restore Medical, commented, “Opportunity to reach more patients and physicians with a proven therapy designed to treat snoring and OSA through Medtronic’s growing ENT business is exciting for Restore Medical. Minimally invasive, office-based procedures to treat snoring and sleep apnea is a large and underserved market. The combination of our implant technology with Medtronic’s ENT business will enhance access to the Pillar System.”
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