SAN FRANCISCO — CardioMEMS Inc., an Atlanta-based medical device company, tapped Cooley for counsel on its acquisition by St. Jude Medical Inc. for $375 million. St. Jude turned to Gibson, Dunn & Crutcher for advice on the matter.
The partnership between Cooley and CardioMEMS traces back more than a decade. Emerging companies partner Frank Rahmani, who led the deal, has worked with CardioMEMS founder Dr. Jay Yadav, a cardiologist and entrepreneur, since he was a summer associate at Cooley in 1997. They collaborated on the formation of Yadav’s first company, AngioGuard Inc., which was acquired by Johnson & Johnson in 1999. He founded CardioMEMS in 2001.
The CardioMEMS deal, which closed Friday, was triggered by CardioMEMS’ announcement that it had received U.S. Food and Drug Administration approval for its Heart Failure System, a miniature wireless monitoring sensor used to measure pulmonary artery pressure. The HF System is the first and only such device to gain FDA approval, and the companies say it’s been proved to reduce hospital admissions for heart failure.
In 2010, St. Jude, which is headquartered in St. Paul, invested $60 million in CardioMEMS for a 19 percent stake and an exclusive right to purchase the rest of the business.
“FDA approval of the CardioMEMS HF System was the culmination of Dr. Yadav’s vision to develop a device that can significantly benefit heart failure patients,” Rahmani said in an emailed statement. “We are proud to have been able to contribute in any way in the success of CardioMEMS.”
In addition to Rahmani, the Cooley team advising CardioMEMS included partner Mehdi Khodadad, special counsel Tali Sealman and Barry Graynor, senior counsel Robert “Buff” Miller and associates Kevin Chen and Alex Kassai.
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