Cardiovascular Systems, Inc. (CSI) (NASDAQ: CSII), today announced plans to build a new corporate headquarters in New Brighton, Minn. The 125,000-square-foot, two-story building will have space for more than 500 employees and contain dedicated research and development, training and education, and manufacturing facilities. CSI’s headquarters will be located in the New Brighton Exchange, a 100-acre parcel of land at the northwest corner of Interstates 35-W and 694, approximately 10 minutes from downtown Minneapolis. Construction by Ryan Companies U.S., Inc., will begin immediately. CSI was represented by TaTonka Real Estate Advisors, and Fredrikson & Byron, PA as counsel.
“With the company’s strong revenue gains from the high growth of our peripheral business and recent FDA approval of our technology for a coronary application, we have outgrown our current facilities,” said David L. Martin, CSI president and chief executive officer. “We’re fortunate to have found a location that allows us to remain in New Brighton—a community we’ve called home and supported since 2005—while continuing to expand and prosper as an organization.”
Martin added, “There are over 16 million people in the United States diagnosed with coronary artery disease and an estimated 12 million Americans suffer from peripheral artery disease. Expanding our operations will enable CSI to help a growing number of people within these large and underserved patient populations.”
CSI recently reported financial results for its fiscal third quarter ended March 31, 2014. The company’s third-quarter revenues grew to $34.9 million, a 32 percent gain from the third quarter of fiscal 2013. In the first nine months of fiscal 2014, revenues increased to $97.0 million, up 29 percent from the fiscal 2013 nine-month period.
According to Martin, CSI will own its new headquarters and be the building’s only tenant. The company today has 191 employees in the Twin Cities and is targeting March 2015 for occupancy. In addition to its Minnesota operations, CSI has a manufacturing facility in Texas that currently employs 43 people.
About Coronary Artery Disease (CAD)
CAD is a
life-threatening condition and leading cause of death in men and women
in the United States. CAD occurs when a fatty material called plaque
builds up on the walls of arteries that supply blood to the heart. The
plaque buildup causes the arteries to harden and narrow
(atherosclerosis), reducing blood flow. The risk of CAD increases if a
person has one or more of the following: high blood pressure, abnormal
cholesterol levels, diabetes, or family history of early heart disease.
According to the American Heart Association, 16.3 million people in the
United States have been diagnosed with CAD, the most common form of
heart disease. Heart disease claims more than 600,000 lives in the
United States each year. According to estimates, significant arterial
calcium is present in nearly 40 percent of patients undergoing a
percutaneous coronary intervention (PCI). Significant calcium
contributes to poor outcomes and higher treatment costs in coronary
interventions when traditional therapies are used, including a
significantly higher occurrence of death and major adverse cardiac
events (MACE).
About Peripheral Artery Disease (PAD)
More than 12 million
Americans, most over age 65, suffer from PAD, which is caused by the
accumulation of plaque in peripheral arteries (commonly the pelvis or
leg) reducing blood flow. Symptoms include leg pain when walking or at
rest. Left untreated, PAD can lead to severe pain, immobility,
non-healing wounds and eventually limb amputation. With risk factors
such as diabetes and obesity on the rise, the prevalence of PAD is
growing at double-digit rates.
Millions of patients with PAD may benefit from treatment with orbital atherectomy utilizing the Stealth 360 and Diamondback 360, minimally invasive catheter systems developed and manufactured by CSI. These systems use a diamond-coated crown, attached to an orbiting shaft, which sands away plaque while preserving healthy vessel tissue—a critical factor in preventing reoccurrences. Balloon angioplasty and stents have significant shortcomings in treating hard, calcified lesions. Stents are prone to fractures and high recurrence rates, and treatment of hard, calcified lesions often leads to vessel damage and suboptimal results.
About Cardiovascular Systems, Inc.
Cardiovascular Systems,
Inc., based in St. Paul, Minn., is a medical device company focused on
developing and commercializing innovative solutions for treating
vascular and coronary disease. The company’s Orbital Atherectomy Systems
treat calcified and fibrotic plaque in arterial vessels throughout the
leg and heart in a few minutes of treatment time, and address many of
the limitations associated with existing surgical, catheter and
pharmacological treatment alternatives. The U.S. FDA granted 510(k)
clearance for the use of the Diamondback Orbital Atherectomy System in
August 2007. To date, over 146,000 of CSI’s devices have been sold to
leading institutions across the United States. In October 2013, the
company received FDA approval for the use of the Diamondback Orbital
Atherectomy System in coronary arteries. For more information, visit the
company’s website at www.csi360.com.
Safe Harbor
Certain statements in this news release are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and are provided under the protection of
the safe harbor for forward-looking statements provided by that Act. For
example, statements in this press release regarding (i) the timeline for
constructing and completing the new headquarters; (ii) anticipated
growth and expansion of CSI; and (iii) potential future results of CSI,
are forward-looking statements. These statements involve risks and
uncertainties which could cause results to differ materially from those
projected, including but not limited to construction delays and
complications; dependence on market growth; the reluctance of physicians
and hospitals to accept new products; the effectiveness of the Stealth
360 and the Diamondback 360 Coronary OAS; actual clinical trial and
study results; the impact of competitive products and pricing; the
difficulty to successfully manage operating costs; fluctuations in
quarterly results; FDA clearances and approvals; approval of products
for reimbursement and the level of reimbursement; general economic
conditions and other factors detailed from time to time in CSI’s SEC
reports, including its most recent annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q. CSI encourages you to
consider all of these risks, uncertainties and other factors carefully
in evaluating the forward-looking statements contained in this release.
As a result of these matters, changes in facts, assumptions not being
realized or other circumstances, CSI's actual results may differ
materially from the expected results discussed in the forward-looking
statements contained in this release. The forward-looking statements
made in this release are made only as of the date of this release, and
CSI undertakes no obligation to update them to reflect subsequent events
or circumstances.
Contacts:
Jack Nielsen, 651-202-4919
j.nielsen@csi360.com
or
PadillaCRT
Matt
Sullivan, 612-455-1709
matt.sullivan@padillacrt.com