Guidant to acquire California company

INDIANAPOLIS -- Guidant Corp. has acquired a California developer of microwave technology used in heart bypass surgery and other procedures for $45 million plus future milestone payments.\nThe microwave systems developed by AFx Inc. are used to operate on some patients with atrial fibrillation, a rhythm abnormality in which the two small upper chambers of the heart quiver instead of beating properly. In the United States, about 2.2 million people have the condition, which can increase the risk of heart failure.\nThe addition of the AFx technology, which allows surgeons to remove heart tissue with microwave energy, is expected to boost Guidant's role in the treatment of heart conditions and expand a product line that includes implantable defibrillators and stints.\nIn addition to bypass surgeries, the technology approved by the Food and Drug Administration has been used in valve procedures. It has been used in more than 5,000 operations.\n"We are enthusiastic about this innovative technology, which expands cardiac surgeons' options for better patient outcomes," Maria Degois-Sainz, Guidant's president of cardiac surgery, said in a prepared statement.\nGuidant, an Indianapolis-based maker of medical devices, will pay $45 million plus future payments contingent on attaining undisclosed milestones. Guidant spokeswoman Kim Boetsch said the companies were not disclosing details of the milestones or the future payments.\nGuidant and privately held AFx, a 40-employee venture based in Fremont, Calif., announced the deal after the close of markets Thursday. The deal is expected to close by April.\nIn trading in the New York Stock Exchange, Guidant shares were down 38 cents to close at $65.92.\nGuidant was spun off from Indianapolis-based drug maker Eli Lilly and Co. in 1994. Guidant has more than 10,000 employees, mostly in Minnesota and California.