Volcano Corporation Announces Agreement To Acquire Crux Biomedical

      Volcano Corporation Announces Agreement To Acquire Crux Biomedical

Company's IVC Filter Will Provide Volcano Entry Into Peripheral Therapeutics
Market

PR Newswire

SAN DIEGO, Dec. 3, 2012

SAN DIEGO, Dec. 3, 2012 /PRNewswire/ -- Volcano Corporation (Nasdaq: VOLC), a
leading developer and manufacturer of precision guided therapy tools designed
to enhance the diagnosis and treatment of coronary and peripheral vascular
disease, said today it has signed an agreement to acquire Crux Biomedical, a
privately-held company that has developed a highly differentiated inferior
vena cava (IVC) filter—the Crux VCF System—to treat pulmonary embolisms
(PE's). Founded in 2004 and based in Menlo Park, California, Crux has received
a CE Mark and 510(k) clearance for its Crux VCF System, an innovative IVC
filter designed to facilitate bi-directional retrieval through either the
femoral or jugular veins.

Under terms of the agreement, Volcano will pay $36.0 million in cash at
closing, which is expected to occur within the next week, subject to a working
capital adjustment and customary closing conditions. Volcano will also pay up
to approximately $3.1 million in Crux transaction expenses. The merger
agreement also provides for a potential post-closing cash milestone payment of
$3.0 million upon FDA clearance of a 510(k) application submitted by Volcano
on or before June 30, 2013, for a retrieval device currently being developed
by Crux. In addition, Volcano may make additional cash payments for up to four
years, based on sales of Crux products following their commercial launch.
Volcano expects to initiate commercial sales of Crux products at the end of
2013 once full-scale manufacturing is implemented at its Rancho Cordova,
California, facility. The company also plans to seek regulatory approval to
market the Crux VCF System in combination with its IVUS (Intravascular
Imaging) technology.

Pulmonary Embolism, which is caused by a migration of a large blood clot from
the deep veins of the legs, affects 600,000 patients in the U.S. every year
and results in an estimated 200,000 deaths annually. IVC filters, particularly
those which can be retrieved, are an important tool in reducing PE risk for
patients in whom anticoagulation is contraindicated or ineffective. The IVC
filter market in the U.S. is estimated at approximately $300 million.

The Crux VCF System received CE Mark in December 2011 and 510(k) clearance in
July 2012. The device has a unique helical design that self-centers and allows
bi-directional retrieval through either the jugular or femoral vein. In the
RETRIEVE 2, 3 and 4 pivotal clinical trials, which enrolled 125 patients at
high risk for PE across 22 global sites, the Crux VCF System demonstrated both
deployment and retrieval success at 98 percent with zero percent embolization,
migration and fracture.

"We are delighted to be adding the novel Crux VCF System, as well as Crux's
other pipeline devices, to our innovative product portfolio. Our ability to
provide this type of cutting-edge therapy furthers our leadership in the
delivery of precision guided therapy and symbolizes our continued evolution
from an intravascular imaging company to one that provides a wide variety of
diagnostic and therapeutic solutions," said Scott Huennekens, president and
chief executive officer of Volcano.

"A key element of our growth strategy is to diversify beyond coronary
applications and increase penetration of the peripheral market with our
imaging technology. As we increase our focus on this market, the ability to
offer a unique IVC filter and, through further regulatory approvals, use IVUS
to facilitate its placement at the bedside, represents compelling clinical and
economic value for patients, clinicians and the healthcare system," he added.

"The Crux VCF System's bi-directional retrievability makes it a highly valued
solution in today's environment of increased clinical focus on removing IVC
filters when the risk of PE is reduced," noted Neil Hattangadi, vice president
and general manager of Volcano's peripheral vascular unit. "This novel device,
which is self-centering and naturally adjusts to the shape of the vessel wall,
is a strong and synergistic addition that advances our presence in venous
applications," he added.

"We are pleased that Volcano and Crux will be joining forces. Volcano has
brought state-of-the art intravascular imaging technology to the global market
and has clearly made a strong commitment to address the peripheral market,"
said Randy Lindholm, chairman of Crux. "We believe Volcano is the perfect
partner for us and is uniquely positioned to generate widespread adoption of
the Crux VCF," he added.

"The Crux VCF represents the first major design innovation for IVC filters in
nearly four decades and incorporates important product attributes that provide
improved patient outcomes," said Thomas Fogarty, M.D., a world renowned
surgeon and founder of Crux. "This transaction pairs two companies that have
led innovation and I believe the future addition of IVUS guidance to the Crux
technology will represent a seminal change in the practice of vascular
medicine," he noted.

About Volcano Corporation

Volcano Corporation is revolutionizing the medical device industry with a
broad suite of technologies that make imaging and therapy simpler, more
informative and less invasive. Our products empower physicians around the
world with a new generation of analytical tools that deliver more meaningful
information—using light and sound as the guiding elements. Founded in
cardiovascular care and expanding into other specialties, Volcano is changing
the assumption about what is possible in improving patient outcomes by
combining imaging and therapy together. For more information, visit the
company's website at www.volcanocorp.com.

About Crux Biomedical

Crux Biomedical, Inc., is located in Menlo Park, California, and is focused on
developing improved therapies for the human vasculature. The company has been
funded by Alloy Ventures, Three Arch Partners, Emergent Medical Partners and
Thomas Fogarty, M.D. Additional information is available at
www.cruxbiomedical.com.

Forward-Looking Statements

This press release contains forward-looking statements with the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Any statements in this
press release regarding Volcano's or Crux's business that are not historical
facts may be considered "forward-looking statements," including: Statements
regarding the expected closing of the Crux acquisition; statements regarding
milestone payments and additional payments that Volcano may be obligated to
make in connection with the Crux acquisition; statements regarding Volcano's
manufacturing and commercialization objectives and timelines regarding Crux
products; statements regarding Volcano's intention to seek regulatory approval
to market the Crux VCF System in combination with Volcano's IVUS technology;
statements regarding the Pulmonary Embolism market size, potential population
and mortality; statements regarding the design, capabilities and advantages of
the Crux VCF System, both independently and in combination with Volcano's IVUS
technology; statements regarding Volcano's growth strategy and the ability of
Crux products to help Volcano achieve that strategy. Forward-looking
statements are based on management's current expectations and are subject to
risks and uncertainties that may cause Volcano's and Crux's results to differ
materially and adversely from the statements contained herein. Some of the
potential risks and uncertainties that could cause actual results to differ
include the risk that the transaction described above is not completed; the
risk that the benefits of the transaction described above are not realized;
the effect of competitive factors and Volcano's reactions to those factors;
purchasing decisions with respect to Volcano's products; the pace and extent
of market adoption of Volcano's products and technologies; uncertainty in
the process of obtaining regulatory approval or clearance for Volcano's
products or devices; the success of Volcano's growth strategies; risks
associated with Volcano's international operations; timing and achievement of
product development milestones; the outcome of ongoing or future litigation;
the impact and benefits of market development; Volcano's ability to protect
its intellectual property; dependence upon third parties; unexpected new data,
safety and technical issues; market conditions; and other risks inherent to
medical device development and commercialization. These and additional risks
and uncertainties are more fully described in Volcano's filings made with the
Securities and Exchange Commission, including Volcano's most recent quarterly
report on Form 10-Q, and other filings made with the Securities and Exchange
Commission. Undue reliance should not be placed on forward-looking statements,
which speak only as of the date they are made. Volcano disclaims any
obligation to update any forward-looking statements to reflect new
information, events or circumstances after the date they are made, or to
reflect the occurrence of unanticipated events.

SOURCE Volcano Corporation

Website: http://www.volcanocorp.com
Contact: Media contact, Edrienne Brandon, ebrandon@volcanocorp.com,
+1-858-720-4136; Investor contact, Neal Rosen, +1-650-458-3014,
nrosen@volcanocorp.com
 
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