Plans are at advanced stage for Koninklijke Philips NV (ADR) (NYSE:PHG) to acquire EPD solutions for €250 million. This deal expected to be closed in July. Additionally, the Dutch provider of healthcare technology will pay €210 million after achieving certain milestones.
Through this acquisition, Philips is seeking to expand its Image-Guided Therapy portfolio. EPD produces cardiac imaging and navigation system which helps electrophysiologists move around the heart and generate a complete 3D image of the cardiac anatomy. In addition, the system is helpful in locating as well as orienting the catheters during diagnosis and treatment of cardiac arrhythmias.
Then new technology helps to simplify treatment and navigation together with assisting in the analysis of the results on a real-time basis. This helps to significantly improve efficiency in procedures. In the February this year, EPD’s solution for image-guided procedures was awarded the CE marking. The US FDA is currently reviewing its premarket notification for the system.
While commenting on the deal, Philips chief executive Frans van Houten the new technology has a lot of potential to help in addressing the unmet need for real-time therapy assessment, which he said has been one of the major limitations with the current care standards. Houten the acquisition will help in put the company in a better position to improve the lives of arrhythmia patients and is also in line with the company’s strategic plan to expand its image-guided therapy solution portfolio.
Philips intends to combine its expertise with the EPD systems that are now being used in many hospitals in Europe and may soon find its way in the U.S market.
Philips seeking to dominate Image-Guided Therapy Market
Philips is one of the main players in the Image Guided Therapy market. This is after it acquired Volcano in 2015. Following this acquisition, Philips became a leader in advanced catheters for diagnosis and therapy. Philips already owns its own imaging system platform called Azurion which was launched in 2017. In addition, the company acquired Spectranetics in June 2017 at $2.05 billion.
At the time of its acquisition, Spectranetics was one of the leaders in vascular intervention to treat peripheral and coronary artery disease. In addition, it was also a dominant provider of electrophysiology (EP) device lead management for the invasive removal of implanted pacemaker and implantable cardioverter defibrillator (ICD) leads.