CHICAGO _ Abbott Laboratories and St. Jude Medical will divest several products in an attempt to satisfy regulators examining Abbott's acquisition of the medical device company.
Abbott, based in suburban Chicago, and Minnesota-based St. Jude will sell the products to Terumo Corp. for $1.12 billion. The Japanese company sells medical devices and pharmaceutical products.
Abbott spokeswoman Darcy Ross said Abbott expects its $25 billion acquisition of St. Jude to close by the end of the year, though the deal still awaits regulatory approval. The sale of the products would take place when the deal closes.
Abbott will divest its Vado Steerable Sheath, which helps doctors perform heart procedures involving catheters, such as procedures for an irregular heart beat. St. Jude will divest its Angio-Seal and Femoseal products, which are used to seal punctures from procedures involving catheters.
The divestitures, announced Tuesday, follow a series of setbacks faced by St. Jude in recent months as it prepares to be acquired.
Earlier this month, St. Jude and the U.S. Food and Drug Administration warned that the batteries in some of St. Jude's heart devices are running out much sooner than expected, creating potentially life threatening situations for patients with the devices implanted in their chests. Two people have died in incidents associated with the devices, called implantable defibrillators, when the devices couldn't deliver needed shocks to the heart after their batteries died early, according to the FDA.
Also, in August, investment firm Muddy Waters Capital called for St. Jude's pacemakers and implantable defibrillators to be recalled, saying they could be the target of cyberattacks that could cause them to malfunction. St. Jude has called the allegations "false and misleading" and has sued Muddy Waters and others, accusing them of releasing incorrect information to lower the value of St. Jude's stock so they could profit through a short-selling scheme.
The FDA, in partnership with the Department of Homeland Security, is investigating Muddy Waters' allegations, though it hasn't recommended people stop using the devices.
St. Jude shareholders are expected to vote Oct. 26 on the acquisition by Abbott.
Abbott's stock climbed 1.4 percent in trading Tuesday to close at $41.17, while St. Jude's stock jumped 2.3 percent to close at $79.44.
