18 Oct 2012, BioSpectrum Bureau , BioSpectrum
Singapore: Medtronic and LifeTech Scientific have entered into a strategic alliance to serve cardiovascular patients and clinicians, who had previously been unreachable and to develop a more robust cardiovascular platform.
Under the terms of the definitive agreements, Medtronic will purchase a 19 percent equity interest in LifeTech and will receive the right to distribute current and future LifeTech products as well as the opportunity to acquire additional ownership upon the achievement of certain financial or development milestones.
Medtronic will also provide services and expertise to LifeTech to support its continued growth, development pipeline and manufacturing capabilities to better serve patients and clinicians in China and globally.
Mike Coyle, executive vice president and president, cardiac and vascular group, Medtronic, said that, "It is an ideal strategic partner for the cardiac and vascular group at Medtronic. With core competencies in materials research and manufacturing and a demonstrated track record of being awarded important state research grants and tenders, this relationship with LifeTech provides an opportunity to accelerate Medtronic's access and competencies in China, so that together we may reach more patients."
Medtronic will purchase its initial equity investment for approximately $46.6 million per share. Medtronic will also purchase a $19.6 million convertible note representing an additional 7.4 percent equity on a fully-diluted post-conversion basis. The transaction is expected to close within the next 60-to-90 days following the receipt of requisite approvals from the shareholders of LifeTech and applicable Chinese and Hong Kong regulatory authorities.