Medtronic Enters Strategic Alliance With LifeTech Scientific Corporation

Medtronic, Inc. and LifeTech Scientific Corporation have entered into a strategic alliance to reach cardiovascular patients in China and other emerging markets.

AsianScientist (Oct. 22, 2012) – Medtronic, Inc. and LifeTech Scientific Corporation have entered into a strategic alliance to reach cardiovascular patients in China and other emerging markets.

Under the terms of the agreement, Medtronic will purchase a 19.0 percent equity interest in LifeTech, and will receive the right to distribute current and future LifeTech products as well as the opportunity to acquire additional ownership upon the achievement of certain financial or development milestones.

Medtronic will also provide services and expertise to LifeTech to support its continued growth, development pipeline and manufacturing capabilities to better serve patients and clinicians in China and globally.

“China is key to our global strategy as we continue to expand our geographic footprint and strive to meet the needs of local cardiovascular patients, and this agreement reaffirms our commitment to this important market,” said Mike Coyle, executive vice president and president of the Cardiac and Vascular Group at Medtronic.

Medtronic will purchase its initial equity investment for approximately HK$3.80 per share (US$46.6 million). Medtronic will also purchase a US$19.6 million convertible note representing an additional 7.4 percent equity on a fully-diluted post-conversion basis. Medtronic will also have the opportunity to acquire additional convertible notes upon the achievement of certain revenue or development milestones.

The transaction is expected to close within the next 60-90 days following the receipt of requisite approvals from the shareholders of LifeTech and applicable Chinese and Hong Kong regulatory authorities.

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Source: Medtronic, Inc.
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