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June 14, 2016

Terumo Corporation (Headquarters: Tokyo, Japan; President and CEO: Yutaro Shintaku) announced today that it has entered into an agreement (hereafter "the acquisition") to purchase Sequent Medical, Inc. (California, United States; hereafter "Sequent"), a privately-held firm developing a new medical device for aneurysm embolization.

The purchase price of $280 million will be paid at closing, with up to $100 million more to be paid based on the achievement of specific development or commercial milestones.

The acquisition is a key element in Terumo's new growth strategy to establish and expand its global presence in the neurovascular market and other rapidly growing markets. Terumo has also identified the cardiology and endovascular markets as potential areas for growth.

1. Purpose of the acquisition

Sequent provides Terumo the opportunity to bring an important new device to the U.S. market and improve its presence in the neurovascular device market, which is expected to grow significantly.

The global neurovascular device market is growing steadily and is expected to reach 300 billion yen in 2018*1. New aneurysm embolization devices are expected to be substantial growth drivers within the overall market.

Terumo entered the neurovascular device market in 2006 by acquiring MicroVention, Inc. (California, United States). Since that time, the company developed a diversified product portfolio covering most product segments in the global neurovascular market, including embolization coils used to treat aneurysms, and related interventional devices and stents.

Sequent develops, manufactures, and sells a unique device that is the world leader and first commercial device in this important new category of aneurysm embolization systems, referred to as intrasaccular flow disrupters. In 2010, Sequent obtained CE mark to commercially sell the WEB™ System in all major markets in Europe. Sequent also recently completed patient enrollment in the WEB-IT Investigational Device Exemption ("IDE") pivotal trial. Data from the trial will be used by the FDA to evaluate the safety and effectiveness of the WEB™ System. Terumo and MicroVention will work with the FDA toward the goal of gaining approval to market and sell the device in the U.S., the largest neurovascular market in the world. Terumo management believes its currently fast-growing neurovascular business will be further enhanced by the addition of Sequent's new aneurysm embolization device.

*1:Terumo estimate

2. Sequent's aneurysm treatment device, WEB™ System

The WEB™ System is based on Sequent's proprietary MicroBraid™ technology, a dense mesh constructed from a large number of extremely fine wires. Unlike conventional medical braids, MicroBraid allows for a mix of wire diameters or materials to achieve a tailored balance of compliance, porosity and profile across device sizes. The WEB™ System enables physicians to treat wide-neck bifurcation aneurysms with the familiarity of an intrasaccular approach while using established biomaterials.

The WEB™ system is commercially available and has already been used to treat more than 3,000 patients worldwide. The WEB™ System is not yet available for sale or distribution in the United States.

The WEB™ Aneurysm Embolization System is intended for the endovascular embolization of ruptured and unruptured intracranial aneurysms and other neurovascular abnormalities such as arteriovenous fistulae (AVF).

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    The WEB™ Aneurysm Embolization Device

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    Deployment Illustration of the WEB™ System

3. About Sequent

Company name: Sequent Medical, Inc.
Representative: Thomas C. Wilder, President and CEO
Founded: 2007
HQ Location: Aliso Viejo, California, United States
Business: Development, manufacture, and sale of aneurysm treatment devices
Employees: Approx. 80 (as of April 2016)

4. Schedule

Pending regulatory approval, Terumo expects to complete the acquisition in July or August 2016. The effects of the acquisition on Terumo's business performance and financial state are currently under review and will be announced when completed.

About Terumo

Terumo (TSE: 4543) is a global leader in medical technology and has been committed to “Contributing to Society through Healthcare” for 100 years. Based in Tokyo and operating globally, Terumo employs more than 28,000 associates worldwide to provide innovative medical solutions in more than 160 countries and regions. The company started as a Japanese thermometer manufacturer, and has been supporting healthcare ever since. Now, its extensive business portfolio ranges from vascular intervention and cardio-surgical solutions, blood transfusion and cell therapy technology, to medical products essential for daily clinical practice such as transfusion systems, diabetes care, and peritoneal dialysis treatments. Terumo will further strive to be of value to patients, medical professionals, and society at large.

Among the information that Terumo discloses, the forward-looking statements including financial projections are based upon our assumptions using information available to us at the time and are not intended to be guarantees of future events or performance. Accordingly, it should be noted that actual results may differ from those forecasts or projections due to various factors. Factors affecting to actual results include, but are not limited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.

 

Information about products (including products currently in development) included in this material is not intended to constitute an advertisement or medical advice.