Under the deal, Baxter received $4m in cash and 1 million shares of Sunshine Heart common stock.
The Aquadex system is indicated for temporary (up to eight hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy.
It is also indicated for extended (longer than 8 hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy and require hospitalization.
Sunshine Chairman and CEO John Erb said: “Aquadex is an important strategic investment, which allows Sunshine Heart to strengthen our presence in the heart failure market.
“We believe Aquadex is a valuable and highly complementary technology to our expanding heart failure product portfolio. There is a real need for fluid management in patients both before and following any kind of heart failure procedure.
“Aquadex is used to treat fluid overload in congestive heart failure patients and can help reduce the length of stay while in the hospital and the number of hospital visits in total.”
In connection with the acquisition, Sunshine Heart had also repaid all outstanding amounts to Silicon Valley Bank under its existing debt facility and has entered into a new $5m loan facility to finance its future working capital needs.
Silicon Valley Bank managing director Ben Johnson noted that Sunshine Heart will be able to drive further advancements to heart failure treatment with this acquisition and that the bank is keen on providing financial support to the company as it moves into the next phase of development.
