Covidien to buy Israeli medical device maker superDimension for $300 mn

Covidien Plc, one of the world's largest healthcare devices and disposables makers, yesterday struck a deal to buy Israeli respiratory systems maker superDimension Ltd for about $300 million in order to expand its offerings into the diagnostics and treatment of lung diseases.

Under the deal that is expected to close in the second quarter of 2012, Covidien will pay privately-held superDimension about $300 million, and a potential future earn out payments.

With annual sales of approximately $30 million, superDimension's i-Logic System uses Electromagnetic Navigation Bronchoscopy to provide minimally invasive access to lesions deep in the lungs as well as mediastinal lymph nodes. By extending the reach of conventional bronchoscopes, the i-Logic System facilitates more effective evaluation of lung lesions, potentially enabling safer, more effective tissue biopsies.

superDimension uses the electromagnetic Navigation technology that was originally developed for planes to navigate within the body by developing an endoscope for the bronchial tubes.

Its electromagnetic navigation bronchoscopy includes a sensor fitted at the tip of a catheter, which sends signals to three magnets placed on the patient's chest, and a magnetic sheet on which the patient lies.

This creates a kind of GPS system for positioning the sensor within the lung. The device can then be precisely sent to the suspected area, such as a tumour for taking a biopsy, and mark the spot for subsequent accurate radiation in order to reduce damage to surrounding healthy tissue.