Abbott Adds Complementary Technologies To Its Vascular Offering Via Cardiovascular Systems Deal For $890M

Author: Vandana Singh | February 09, 2023 07:57am

• Abbott Laboratories (NYSE:ABT) agrees to acquire Cardiovascular Systems Inc (NASDAQ:CSII) for $20/share for an equity value of approximately $890 million.
• CSI offers devices for atherectomy, a minimally invasive treatment for plaque build-up in arteries that can restrict blood flow.
• Procedural use of atherectomy can help maximize the benefits of standard balloon angioplasty or stent treatments in restoring blood flow in complex arterial disease. 
• CSI also has an early-stage pipeline of complementary vascular intervention devices in development.
• "The acquisition of CSI will add new, complementary technologies to Abbott's leading vascular device offerings," said Lisa Earnhardt, EVP of Medical Devices of Abbott. 
• Upon close, the transaction is expected to be neutral to Abbott's recently issued 2023 ongoing earnings per share guidance.
• Q4 Earnings: Cardiovascular Systems reported Q2 FY23 sales of $61.5 million, up 3.9% Y/Y, missing the consensus of $63.08 million, with a gross profit margin of 70.0%.
• Second-quarter net loss of $7.9 million, or $(0.20)/share below the consensus of $(0.15). The Adjusted EBITDA loss increased to $(3.7) million from $(3.0) million in the prior year.
• Price Action: CSII shares are up 48.6% at $19.78 during the premarket session on the last check Thursday.

Posted In: ABT CSII