Cordis Corporation Acquires Ensure Medical, Inc.
New Bioabsorbable Vascular Wound Closure Technology Expands Innovative Portfolio
Miami Lakes, FL, and Warren, NJ, July 13, 2006 - Cordis Corporation, a Johnson & Johnson company, the worldwide leader in cardiac and vascular technologies, today announced that it has acquired Ensure Medical, Inc., a privately held company in Sunnyvale, CA, that develops devices for post-catheterization closure of the femoral artery.
The lead investigational technology from Ensure Medical, Inc., is a femoral artery closure device (ACD), which uses a synthetic bioabsorbable polymer to stop bleeding and close the site of the arterial puncture. ACDs are designed to enable expedited closure time and reduce bed-stay when compared to conventional manual compression methods for wound access site closure. Nearly eight million patients undergo cardiac catheterization procedures annually.
"Bioabsorbable wound closure has had a significant impact on patients during post-catheterization recovery. We have seen evidence to indicate that patients may experience less pain and can return to self-sufficiency much sooner," said Peter Fitzgerald, M.D. Ph.D., professor of Medicine, Stanford University Hospital, Stanford, CA, and one of the founders of Ensure Medical, Inc. "Ensure is excited about working with Cordis Corporation to accelerate this new ACD into the market and make a difference for health care providers and the patients they treat."
Cordis Corporation expects the investigational bioabsorbable ACD to enter into clinical trials in early 2007 in order to secure approval for marketing from the U.S. Food and Drug Administration and regulatory authorities elsewhere around the world.
The acquisition of Ensure Medical, Inc., further expands Cordis Corporation's presence on the West Coast, which includes Nitinol Devices and Components (NDC), and the West Coast Innovation Center, a new state-of-the-art advanced research and development facility in the San Francisco Bay Area of California. The development program for the new ACD, NDC and the recently announced West Coast Innovation Center, are under the leadership of Cordis Corporation's chief technology officer, Campbell Rogers, M.D., who joined the company in early July.
"The addition of Ensure Medical enriches Cordis' ever-expanding portfolio of cardiac and vascular devices to offer health care professionals a broader range of innovative technologies to effectively treat the continuum of cardiovascular disease," said Rick Anderson, company group chairman, Johnson & Johnson, and worldwide chairman, Cordis Franchise.
As a result of the acquisition, Johnson & Johnson expects to incur an estimated one-time after-tax charge of approximately $52 million, or $.02 per share, related to the expensing of in-process research and development. Other terms of the transaction were not disclosed.
About Cordis Corporation
Cordis Corporation, a Johnson & Johnson company, is a worldwide leader in developing and manufacturing interventional cardiac and vascular technology. Through the company's innovation, research and development, physicians worldwide are better able to treat the millions of patients who suffer from cardiac and vascular disease.
(This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Johnson & Johnson's expectations and projections. Risks and uncertainties include: general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of the Johnson & Johnson Annual Report on Form 10-K for the fiscal year ended January 1, 2006. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov or on request from Johnson & Johnson. Johnson & Johnson assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.)