Edwards spends $100m on monitoring technology collaborator

The valve specialist Edwards Lifesciences has made its first business development move since 2017, and it is on a company that does not have a cardiovascular technology. CAS Medical Systems, which Edwards has agreed to buy for $100m, has developed a noninvasive cerebral oximetry technology called Fore-Sight Elite designed to guard against prolonged cerebral hypoxia among patients undergoing a variety of surgical procedures. The two groups have been working to combine the Fore-Sight sensor with Edwards’ HemoSphere haemodynamic monitoring platform. This combined tech is now approved in Europe; in the US Edwards is awaiting 510(k) clearance for a smart cable and accompanying software, which will be the last step allowing the combined system onto the market. Edwards will pay $2.45 cash per share of CAS’s common stock, a 56% premium to yesterday’s close, meaning that the total consideration is nearly five times CAS's forecast 2018 sales.

CAS Medical Systems
  Annual sales ($m)  
Segment 2018e 2020e 2022e 2024e CAGR
Tissue oximetry sensors 19.0 24.6 29.9 35.2 +11%
Tissue oximetry monitors & accessories 2.0 2.1 2.6 3.1 +7%
Traditional monitoring, including service 0.5 0.5 0.5 0.5 -0%
Total company revenues 21.6 27.2 33.0 38.8 +10%
Source: EvaluateMedTech.

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