EndoSonics to acquire Navius

Intravascular ultrasound developer EndoSonics last month signed an agreement to acquire Navius, a privately held San Diego-based developer of angioplasty balloons, stents, and intravascular radiation devices. The Navius acquisition gives EndoSonics access to the intravascular ultrasound-guided stenting market. EndoSonics has agreed to pay approximately $15.5 million in cash and EndoSonics common stock, in addition to royalties on future product sales. The deal was expected to close July 31.

The Rancho Cordova, CA, firm also announced last month an agreement in principle to partner with Fukuda Denshi, a Japanese medical products company. Fukuda has agreed to make an equity investment and R&D funding totaling $13 million in EndoSonics.

The agreements cut EndoSonics' final ties to Johnson & Johnson's Cordis division, the company's former distributor and therapeutic product partner. EndoSonics decided to terminate its relationship with Cordis when its product orders declined (SCAN 4/29/98).

In other EndoSonics news, the company reported second-quarter 1998 (end-June) net income of $1 million on revenue of $10 million, a 34% increase over the $751,000 net income on revenue of $7.1 million for the previous year's second quarter.