Sep 19, 2000
Guidant Continues to Evaluate Impulse Dynamics Heart Failure Technology

Company to Make Acquisition Decision After Completing Comprehensive Investigation

Indianapolis, IN - Guidant Corporation (NYSE and PCX: GDT), a world leader in the medical technology industry, today announced it is still actively reviewing its exclusive option to acquire emerging cardiovascular technology for the treatment of heart failure from Impulse Dynamics, N.V. This announcement is made in response to misleading information that has been circulated relative to the status of this acquisition.

"Guidant is currently conducting extensive research into a number of scientific and clinical aspects of Impulse Dynamics'' heart failure technology," commented Fred McCoy, president, Guidant Cardiac Rhythm Management Group. "Although Guidant has until April of next year to exercise the option to acquire the technology, we anticipate that the research will be completed before the end of this year."

Among other matters, Guidant is currently researching the following factors related to the Impulse technology: the sustainability of the effect of the therapy, the applicability of the therapy to hearts of various sizes, any unexpected arrhythmic effects and whether the therapy causes any chronic structural changes to the heart.

As previously announced, under the terms of the agreement with Impulse Dynamics, Guidant made an initial payment of $125 million to have the exclusive right to evaluate cardiovascular technology under development by Impulse Dynamics. Impulse Dynamics is a pioneer in the development of technology that may be used in future implantable devices to provide additional benefit to patients with heart failure. If Guidant chooses to acquire exclusive rights to this technology, an additional payment of approximately $300 million will be made, plus contingent payments based on future sales of covered products. If additional payment is warranted, Guidant currently plans to finance the transaction by traditional commercial paper instruments.

"In any event, resynchronization therapy for the treatment of heart failure remains an exciting and potentially explosive opportunity for Guidant," continued McCoy. "We continue to advance our own groundbreaking work in the development of resynchronization therapy for the treatment of heart failure. Resynchronization therapy has the potential to save and improve the quality of life for a broad group of heart failure patients." At the end of June, Guidant announced that it had completed the necessary number of implants of its CONTAK(tm) CD heart failure device system, including the EASYTRAK(tm) lead, to provide the data necessary to support Guidant's pre-market approval application with the FDA. Progress of these patients will be followed for a minimum of six months before data are available for submission to the FDA.

Heart failure is a debilitating condition that when in an advanced state, the heart is unable to pump enough blood to the body to allow a person to enjoy a normal, productive life. It affects well over 5 million people in the United States and an estimated 6.5 million in Europe. Nearly 1 million new cases are diagnosed annually, making it the most rapidly growing cardiovascular disorder. According to statistics provided by the American Heart Association, approximately $22.5 billion are spent annually on the direct and indirect costs of treatment of heart failure in the U.S.(1)

A global leader in the medical technology industry, Guidant Corporation provides innovative, minimally invasive and cost-effective products and services for the treatment of cardiovascular and vascular disease.

1. Source: American Heart Association