Medtronic Announces Acquisition of TYRX, Inc., Developer of Solutions for Surgical Site Infections

MINNEAPOLIS – Jan. 06, 2014 – Medtronic, Inc. announced that it has acquired TYRX, Inc., a privately held, New Jersey-based developer of implantable combination antibiotic drug and implanted medical devices. TYRX’s product offerings include the recently FDA cleared AIGISRx R Fully Resorbable Antibacterial Envelope, designed to reduce surgical site infections associated with cardiac implantable electronic devices (CIEDs), and the AIGISRx N Antibacterial Envelope, for use with spinal cord neuromostimulators.

The all-cash transaction includes an initial payment of $160 million plus potential earn out and performance based milestone payments. Medtronic expects the net impact from this transaction to be neutral to fiscal year 2014 earnings and for this transaction to be consistent with the company's disciplined focus on long-term returns.

“While the risk of infection from an implanted pacemaker or defibrillator is low for most patients, repeated operative procedures after the initial device implant are associated with a substantial incremental risk of infection. This is estimated to cost the U.S. healthcare system more than $1 billion per year,” said Pat Mackin, president of the Cardiac Rhythm Disease Management business and senior vice president at Medtronic. “TYRX has developed an innovative, proven technology to reduce infection risk, making the procedure safer for patients and removing significant costs from the healthcare system.”

"We look forward to joining Medtronic as part of a combined portfolio that can positively impact outcomes for patients by reducing implant-related infections, and bring value to our customers," said Robert White, president and chief executive officer of TYRX.