Medtronic to Acquire VitaMed for $326 Million

In a move to expand its urologic business, Medtronic, Inc. (Minneapolis, MN, USA) has agreed to acquire VitaMed, Inc. (Fremont, CA, USA) for around US$326 million. VitaMed has developed and patented a treatment for benign prostatic hyperplasia (BPH) called Transurethral Needle Ablation (TUNA). Since January 2000, Medtroni has held a minority investment in VidaMed.

VitaMed's nonsurgical TUNA therapy delivers low-level, precisely controlled radiofrequency (RF) energy directly into the prostate to diminish obstructing tissue. The procedure can be performed in a urologist's office in less than 30 minutes, requires minimal anesthesia, and allows men to return to normal activities within 24 hours. VidaMed had revenues of $8.2 million in 2000.

"We believe VidaMed's patented TUNA therapy provides a compelling alternative to a
lifelong commitment to drugs or radical surgery that can have significant side effects,” said Scott Ward, president of Medtronic Neurologic and Diabetes.



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