December 11, 2007, San Diego, CA--Volcano Corporation , a provider of intravascular ultrasound (IVUS) and functional measurement (FM) products designed to enhance the diagnosis and treatment of vascular and structural heart disease, will acquire CardioSpectra (San Antonio, TX), a privately held company developing innovative optical coherence tomography (OCT) technology. CardioSpectra's unique OCT imaging system is expected to complement Volcano's existing product offerings and will further enhance Volcano's position as an imaging technology leader in the field of interventional medicine.
Under terms of the agreement, Volcano will pay $25 million in cash at closing, which was expected to occur by the end of 2007. In addition, Volcano may make additional payments based on the achievement of certain product development, regulatory, and revenue milestones. Any future payments may be made in cash or stock or a combination of both at Volcano's discretion.
Founded in 2005, CardioSpectra's core product line is based on technology licensed from the University of Texas and Dr. Thomas Milner, a co-founder of CardioSpectra.
"We believe CardioSpectra's OCT technology and products will be an important addition to Volcano, as we expect that it will allow us to expand our reach into clinical situations where extremely high resolution imaging is paramount," said Scott Huennekens, president and chief executive officer of Volcano. "Our long-term goal is to integrate this OCT functionality directly into our s5i integrated imaging suite of products, offering hospitals and physicians a complete, multi-functional capability that seamlessly provides IVUS, functional measurement and OCT all in one system."
CardioSpectra's OCT system allows fast, easy imaging of highly detailed structures in the vasculature, including vessel wall defects, intra-luminal thrombus and stent struts. The ability to visualize stent expansion and apposition is excellent when using OCT. According to the company, CardioSpectra's OCT resolution is such that it is able to visualize even very thin layers of cells covering drug eluting stent struts at follow-up.
"The resolution from this system is truly remarkable - providing significantly greater resolution in the near field than conventional IVUS," Huennekens said. "Rather than competing with our IVUS offerings, OCT complements our existing business by opening up clinical indications and research opportunities beyond those available to IVUS."
CardioSpectra's offering consists of a console with advanced custom software, a pull-back device and disposable catheters. The system and accessories are not approved for human use at this time. The company expects to file for appropriate U.S. and international approvals during 2008. CardioSpectra holds a number of issued U.S. patents on its technology with many additional patents pending.