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DLA Piper and Perkins Coie advise on Haemonetics/Attune Medical Merger

Healthcare business concept, Medical examination and growth graph data of business on tablet with doctor's health report clipboard on background.

As global demand for heart rhythm procedures surges, medical tech company Haemonetics Corporation (NYSE: HAE), announced it will acquire privately-held Chicago-based Attune Medical for $160 million cash up front, as well as additional consideration contingent on milestones and sales growth in the three years post-closing. Attune Medical manufactures a cooling device called ensoETM that protects a patient’s esophagus during radiofrequency cardiac ablation procedures.

In radiofrequency cardiac ablations, the doctor guides a tube into the patient’s heart and uses radio waves to heat a precise area of tissue. This destroys the area sending the errant electrical signals to the heart that occur in a dangerous irregular heartbeat condition called atrial fibrillation (AFib).

“In the treatment of atrial fibrillation, a condition that affects 3 to 6 million people in the U.S., ensoETM significantly reduces the likelihood of esophageal injury during RF cardiac ablations,” according to the companies’ joint press release. “Additionally, studies have reported reduced procedure times and patient readmissions, and increased rates of same-day discharge and long-term procedure success with the use of ensoETM.”

Ablations are a crucial procedure in combating AFib, which can lead to heart failure, stroke, and death if left untreated. With 32% of global deaths caused by cardiovascular disease, AFib represents a major contributor to mortality worldwide. The issue is worsening every year — by 2050, AFib is projected to affect 72 million people, an increase of nearly 70%.

Source: Nature Reviews Disease Primers

AFib is most prevalent in “high sociodemographic index regions based on average income per person, educational level and total fertility rate of each region as well as common lifestyle-related cardiovascular risk factors and comorbidities,” according to Nature Reviews Disease Primers. “Lifestyle factors associated with increased AF risk include excessive consumption of alcohol, low-carbohydrate and high-fat intake, sleep apnoea, and sedentary behaviour or excessive physical exercise as a lifestyle.”

While AFib is more prevalent in the U.S. specifically and the West generally, this is projected to change rapidly in the coming years. For example, by 2050, China’s 60+ population is projected to suffer from AFib at a rate 2.3 times the prevalence in the U.S. This change is due to the “rising incidence of chronic diseases, including hypertension, metabolic syndrome and diabetes mellitus, related to urban lifestyle and dietary changes in the Chinese population.”

Source: Grandview Research

In the U.S. alone, the market for AFib treatments is projected to expand at a compound annual growth rate of 10.1% over the next 7 years. Haemonetics hopes to capitalize on the corresponding rapidly increasing need for cardiac ablation procedures.

According to DealPulse’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly-announced transactions, Haemonetics is advised by law firm DLA Piper. Attune Medical is advised by Perkins Coie LLP and financial adviser William Blair.

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