Following news about Abbot Laboratories' plans to acquire St. Jude Medical, the companies will sell $1.12 billion in products to Japan-based Terumo, according to Chicago Tribune.
Here are seven insights:
1. Headquartered in Lake Bluff, Ill., Abbott projects its $25 billion deal to acquire St. Jude Medical will close by the end of 2016, a company spokesperson said.
2. To appease regulatory concerns, Abbott plans to divest its Vado Steerable Sheath, a device helping physicians perform heart procedures involving catheters. Minnesota-based St. Jude Medical will divest its Angio-Seal and Femoseal products, which providers use to seal punctures from catheter-based procedures.
3. St. Jude Medical came under fire earlier this month after the company and the FDA warned consumers that some of the company's heart devices are equipped with batteries that are running out sooner than projected.
4. The FDA said two people have died in cases related to the devices after the devices could not deliver the necessary shocks to the heart because of batteries dying early, Chicago Tribune reports.
5. Muddy Waters Capital implored St. Jude to recall its pacemakers and implantable medical devices in August, arguing cybercriminals may target the devices, leading them to malfunction. In response, St. Jude referred to the claims as "false and misleading" and filed a lawsuit against Muddy Waters and others. In the suit, St. Jude alleges they released incorrect information to decrease St. Jude's stock value as a way to profit themselves.
6. The FDA has not advised people to stop using the devices, but the agency is looking into the Muddy Water's allegations alongside HHS.
7. On Oct. 26, St. Jude shareholders are expected to vote on the Abbott deal.
More articles on devices:
Foothills Medical Centre joins INSPIRE study as Canadian site: 5 key points
Amendia joins forces with Global Spine Outreach to enhance scoliosis care — 3 observations
Hensler Surgical launches patented bone collector: 4 takeaways