FoxHollow Technologies Announces Agreement to Acquire Kerberos Proximal Solutions
August 28 2006 - 4:01AM
PR Newswire (US)
Thrombectomy aspiration device will expand FoxHollow's product line
to combat arterial disease REDWOOD CITY, Calif., Aug. 28
/PRNewswire-FirstCall/ -- FoxHollow Technologies (NASDAQ:FOXH)
today announced it has signed a definitive merger agreement to
acquire Kerberos Proximal Solutions, Inc., a privately-held company
focused on the development of innovative medical devices for the
removal of thrombus, or blood clots, from occluded arteries.
Kerberos' unique thrombectomy device is expected to complement
FoxHollow's existing product offerings, which are designed to
remove plaque from clogged arteries. Under the merger agreement,
FoxHollow has committed to pay approximately $32 million at
closing, of which approximately $13 million is expected to be paid
in the form of stock. FoxHollow may also make earnout payments
after each of the second and third years following the transaction,
based on 21/2 times that year's sales less the value of all prior
payments. The earnout payouts may be made in cash or stock at
FoxHollow's sole discretion. "We believe the Kerberos thrombectomy
system is a great first addition to FoxHollow's product portfolio,
which previously has been focused exclusively on SilverHawk Plaque
excision in peripheral vessels. The product is easy for physicians
to use and will nicely overlap our existing customer base. We
believe the Kerberos products will find wide application in both
the coronary and peripheral arteries and bring relevant clinical
value to our patients," said John B. Simpson, Ph.D., M.D.,
FoxHollow's Founder and CEO. The thrombectomy system developed by
Kerberos includes a catheter with a trigger-like handle, which
simultaneously rinses and aspirates thrombus from arteries.
Thrombus is a common problem in many patients with Coronary Artery
Disease (CAD) and Peripheral Artery Disease (PAD). The Kerberos
System, which is FDA approved, can also deliver physician-specified
therapeutic solutions to the site of the arterial blockage. The
acquisition of the Kerberos peripheral product line will help
strengthen FoxHollow's mission to provide the 12 million PAD
sufferers in the U.S. with an alternative to bypass surgery or
amputation. As FoxHollow's SilverHawk Plaque Excision System
continues to be used in more complex procedures, such as Total
Occlusions and Critical Limb Ischemia, where thrombus is often
present, Kerberos' complementary devices will help achieve greater
success in reducing lower extremity amputations. Furthermore, due
to the efficacy and ease of use of the Kerberos System, it has seen
significant adoption in the rinsing and evacuation of thrombotic
debris in patients suffering from acute myocardial infarction, or
heart attack. "I have used the Kerberos System in the most
challenging circumstances, both in the heart and the legs. I have
found it to be one of the best thrombectomy devices on the market,"
said Dr. Stefan Kiesz, interventional cardiologist and President of
the San Antonio Endovascular & Heart Institute. King Nelson,
President and CEO of Kerberos Proximal Solutions, stated, "We
believe FoxHollow and Kerberos are a perfect fit. The 200-plus
person sales and marketing team at FoxHollow has proven their
ability to drive wide adoption of innovative devices in the
interventional community. The Kerberos and SilverHawk products
complement each other and will provide significant added value to
FoxHollow's current customer base." The transaction is expected to
close by the end of the third quarter of 2006 and will have minimal
impact on FoxHollow's revenue during the third and fourth quarters
of this year. The addition of Kerberos' operations is expected to
reduce FoxHollow's 2006 earnings per share by $0.08-$0.10,
excluding one-time charges associated with the transaction, and is
expected to be modestly accretive in 2007. About FoxHollow
Technologies, Inc. FoxHollow Technologies, Inc., develops and
markets minimally invasive plaque excision devices for the
treatment of peripheral artery disease (PAD). An estimated 12
million people in the U.S. are thought to suffer from PAD, with 2.5
million patients currently diagnosed. PAD results from plaque that
accumulates in the arteries and blocks blood flow in the legs.
These blockages can result in severe pain for patients and very
limited physical mobility. The company's SilverHawk system is a
minimally invasive method of removing the obstructive plaque and
restoring blood flow to the legs and feet. For more information,
please visit our website at http://www.foxhollowtech.com/. About
Kerberos Proximal Solutions Kerberos Proximal Solutions is a
privately-held medical device company based in Cupertino, Calif.
Founded in 2001, Kerberos is dedicated to developing innovative
solutions to treat vascular disease. The Company is focused on
delivering their technology and services to interventional
cardiologists, interventional radiologists and vascular surgeons.
The key investors in Kerberos include Research Corporation
Technologies, Three Arch Partners, and Alta Partners. For more
information, visit http://www.kerberos-md.com/. Forward Looking
Statements This press release contains forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995. Statements in this press release regarding FoxHollow's
business that are not historical facts may be "forward-looking
statements" that involve risks and uncertainties. Specifically,
statements concerning expectations about the closing of the
transaction, product performance, future acquisitions, and the
impact of this acquisition on revenue and earnings per share are
forward- looking statements within the meaning of the Safe Harbor.
Forward-looking statements are based on management's current,
preliminary expectations and are subject to risks and
uncertainties, which may cause FoxHollow's actual results to differ
materially from the statements contained herein. The potential
risks and uncertainties that could cause actual results to differ
from the results predicted include the risk that the merger does
not close, the ability to integrate manufacturing and sales of
Kerberos products into FoxHollow, physician acceptance of Kerberos
products, and intellectual property and regulatory risks related to
selling Kerberos products. Other risks and uncertainties are
included under the captions "Management's Discussion and Analysis
of Financial Condition and Results of Operations" and "Risk
Factors" in our Quarterly Report on Form 10-Q as filed with the
Securities and Exchange Commission on August 9, 2006, which is on
file with the SEC and available on our investor relations website
at http://investor.foxhollowtech.com/ and on the SEC's website at
http://www.sec.gov/. Undue reliance should not be placed on
forward- looking statements, which speak only as of the date they
are made. FoxHollow undertakes no obligation to update publicly any
forward-looking statements to reflect new information, events or
circumstances after the date they were made, or to reflect the
occurrence of unanticipated events. Contacts Investor Relations:
Matt Ferguson Chief Financial Officer 650-421-8449 Media Relations:
Robin Gaffney 650-421-8614 DATASOURCE: FoxHollow Technologies, Inc.
CONTACT: Investor Relations: Matt Ferguson, Chief Financial
Officer, +1-650-421-8449 or , or, Media Relations: Robin Gaffney,
+1-650-421-8614 or , both of FoxHollow Technologies, Inc. Web site:
http://www.foxhollowtech.com/
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