ST. PAUL, Minn.--(BUSINESS WIRE)--St. Jude Medical, Inc. (NYSE:STJ - News), announced today the acquisition of the intellectual property and non-cash assets of Northstar Neuroscience, Inc. (Nasdaq:NSTR - News), a medical device company, for a payment of $2 million.
“Today’s announcement reflects St. Jude Medical’s strong commitment to developing our neuromodulation business,” said Daniel J. Starks, chairman, president and chief executive officer of St. Jude Medical. “The purchase of these assets strengthens our intellectual property position which is critical to bringing important therapies to the market.”
Northstar focused on developing cortical stimulation therapies for the treatment of major depressive disorder, stroke and other neurological disorders. The company developed the Renova™ Cortical Stimulation System, an investigational device designed to deliver targeted stimulation to the cerebral cortex.
Cortical stimulation involves a neurosurgical procedure to place an electrode over a specific area of the brain’s cortex, the outer layer of the brain which plays a role in many complex brain functions including movement, behavior, perceptual awareness, vision and hearing. The electrode is then connected to a neurostimulator that is implanted in the patient’s chest.
“Today there are millions of people who suffer from various neurological disorders that do not have an adequate treatment,” said Chris Chavez, president of the St. Jude Medical Neuromodulation Division. “We believe cortical stimulation shows promise as another potential therapy for those patients who have proven refractive to other treatments.
With this transaction, St. Jude Medical acquires Northstar’s intellectual property portfolio, clinical study data, device designs, and manufacturing equipment. The transaction is expected to be neutral to St. Jude Medical’s consolidated earnings per share in 2009.
More than 45,000 patients in 35 countries have been implanted with St. Jude Medical neurostimulation systems. For more information about St. Jude Medical pain therapies, visit www.PowerOverYourPain.com.
About Northstar Neuroscience
Northstar Neuroscience, Inc. was founded in 1999 with a mission of developing and commercializing innovative neuromodulation therapies to restore function and quality of life for people suffering from neurological diseases and disorders. The sale of Northstar's intellectual property and non-cash assets is pursuant to the plan of liquidation and dissolution approved by its shareholders in May 2009.
About St. Jude Medical
St. Jude Medical develops medical technology and services that focus on putting more control into the hands of those who treat cardiac, neurological and chronic pain patients worldwide. The company is dedicated to advancing the practice of medicine by reducing risk wherever possible and contributing to successful outcomes for every patient. Headquartered in St. Paul, Minn., St. Jude Medical employs approximately 14,000 people worldwide and has four major focus areas that include: cardiac rhythm management, atrial fibrillation, cardiovascular and neuromodulation. For more information, please visit www.sjm.com.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements include the expectations, plans and prospects for the Company, including potential clinical successes, anticipated regulatory approvals and future product launches, and projected revenues, margins, earnings and market shares. The statements made by the Company are based upon management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the Company’s control and the risk factors and other cautionary statements described in the Company’s filings with the SEC, including those described in the Risk Factors and Cautionary Statements sections of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2009. The Company does not intend to update these statements and undertakes no duty to any person to provide any such update under any circumstance.
St. Jude Medical, Inc.
Angela Craig, 651-481-7789