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Corindus investors approve Siemens merger

Shareholders of vascular robotics developer Corindus Vascular Robotics have approved the $1.1 billion merger with Siemens Healthineers.

Under the terms of the agreement, Corindus shareholders will receive $4.28 in cash per share they own.

After the transaction closes, Corindus’ shares will therefore be delisted from the NYSE American.

“Corindus has established a leading position in vascular robotics with a compelling technology platform for robotic-assisted coronary, peripheral, and neurovascular procedures,” said Siemens advanced therapies president Michel Therin.

Therin added that the acquisition of Corindus, coupled with its technology, will help advance the growth of vascular robotics segment.

Recently, Corindus reported second quarter financial results. At the time, the results showed its earnings were down 26% from 2018. Corindus’ shares fell 15% ahead of the news of the merger with Siemens.

In 2017, activist short seller Cliffside Research published a report on Corindus, claiming that the company’s CorPath suffers from high cost and dubious effectiveness. “Based on our analysis, we believe analyst estimates are highly speculative and should not be relied upon,” Cliffside said.

Corindus’ CorPath is the first medical device to bring robotic technology to percutaneous coronary and vascular procedures.

The company filed neurovascular indication for CorPath GRX in February, but FDA requested additional data in April. Corindus CEO Mark Toland told investors last May that the company is in regular discussions with the FDA over the data needed to support the application.

Citigroup Global Markets served as exclusive financial adviser to Corindus, while Cadwalader, Wickersham & Taft provided legal advice.

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