ArthoCare buys Applied Therapeutics for $10mm
BY JOHN MCCORMICK, AUGUST 19, 2005
On Wednesday afternoon, Arthrocare (nasdaq:ARTC) announced that it has purchased substantially all of the assets and certain liabilities of Applied Therapeutics Inc. for $10 million in cash. The deal also includes a payment contigent on Applied Therapeutics' revenue from Feb. 1, 2006 through Jan. 31, 2007.
Applied Therapeutics, which makes products to treat wounds in the ear, nose and throat, is best known for its Gel Knit nasal dressings and dissolvable Sinu Knit stents, which are used after endoscopic sinus surgery to control minor bleeding. ArthroCare expects the product line to add at least $5 million in revenue so this is a relatively small acquisition for Arthrocare which has been performing strongly this year. A webcast about the deal is posted here.
