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| WEB Aneurysm Embolization Device--Courtesy of Sequent Medical |
Terumo will acquire Sequent Medical, which is working on a minimally invasive device to treat intracranial aneurysms. The Japanese devicemaker will pay $280 million up front for the Aliso Viejo, CA-based startup, with an additional $100 million to follow if development or commercial milestones are achieved.
"Sequent provides Terumo the opportunity to bring an important new device to the U.S. market and improve its presence in the neurovascular device market, which is expected to grow significantly," Terumo said in a statement.
Sequent's aneurysm tech, dubbed the WEB system, uses its proprietary Microbraid technology in a dense mesh design. It is designed to treat intracranial aneurysms without the need for surgery. According to Sequent, the device is implanted under general anesthesia via microcatheter through the femoral artery. The implant is delivered to the brain using the WEB Aneurysm Embolization System, an electrothermal detachment device. The surgeon uses a handheld controller to guide the implant to the brain and release it.
The Microbraid technology is made from a large number of fine Nitinol wires. The company differentiates it from other medical braids by the range of wire diameters, which allows a "tailored balance of compliance, porosity and profile across device sizes." The WEB implant comes in two versions in a variety of heights and diameters.
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| Illustration of deployed WEB device--Courtesy of Sequent Medical |
The system is for the endovascular embolization, or the sealing off of, ruptured and unruptured intracranial aneurysms and other neurovascular abnormalities. It won a CE Mark in 2010. It has since been used to treat more than 3,000 patients worldwide.
While the WEB system is not yet available in the U.S., Sequent raised $20 million in venture financing in April 2014 to bring it to the U.S. market. Founded in 2007, Sequent has raised about $80 million in venture capital, according to SEC filings. Its investors include Versant Ventures, U.S. Venture Partners, Domain Associates and Delphi Ventures.
Terumo plans to close the acquisition in July or August this year. It has not yet determined the financial effects of the buy. It first forayed into the neurovascular space in 2006 with its acquisition of MicroVention. It will work with the FDA to bring the WEB system to market in the U.S., the largest neurovascular market in the world, it said in the statement.
- read the statement