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The Biggest Medtech M&As So Far This Year

The medical device and diagnostics industry has already seen some fairly large deals in 2018.

  • Johnson & Johnson is entertaining a $2.7 billion offer for its sterilization unit. The New Brunswick, NJ-based company said Fortive wants to buy the business, which is currently part of J&J's Ethicon division. The sterilization business earned about $775 million in sales last year. J&J has 120 days to accept the offer.

    For more on this deal, check out this story: Is There an End in Sight for J&J Divestitures?

  • Editor's note: This slide was added on June 19, 2018, after the deal was announced.

    Roche agreed to pay $2.4 billion to acquire the remaining shares of Foundation Medicine, a company that develops genomic profiling assays to pair cancer patients with relevant treatments and clinical trials. The companies have worked together for some time now, and in January 2015 Roche acquired a minority interest in Foundation Medicine through an investment of about $1.03 billion.

    For more on this deal, check out this story: Roche Is Willing to Pay a Pretty Penny for the Rest of Foundation Medicine

  • Johnson & Johnson is also selling its LifeScan unit to Platinum Equity for $2.1 billion, marking the company's exit from blood glucose monitoring business. Platinum Equity made the bid in March and J&J said on June 12 that it has accepted the offer. The LifeScan unit earned $1.5 billion in revenue in 2017.

    For more on this deal, check out this story: J&J Agrees to $2.1B Sale of LifeScan

  • Editor's note: This slide was updated June 14, 2018, after Sirtex announced that it would be acquired by CDH Investments instead of Varian Medical Systems.

    Varian Medical Systems reported plans in January to acquire Sirtex Medical for $1.3 billion. Sirtex, which specializes in interventional oncology, suffered several setbacks in 2017, including the firing of its CEO, and disappointing clinical trial results.

    Those plans changed, however, on June 14 when Sirtex decided to accept a competing bid from CDH Investments and its partner China Grand Pharmaceutical for about $1.4 billion.

    For more on this deal, check out the story: CDH Beats Varian in Bid for Embattled Sirtex.

  • A $1.05 billion bid for GE Healthcare's value-based care division could be just what the company needs to create a leaner business focused on diagnostics and artificial intelligence products. Veritas Capital made the offer in April and the divestiture is expected to close in the third quarter of 2018.

    For more on this deal, check out the story: GE's CEO Makes Good on Promise to Divest Assets

  • Integer Holdings Corp. is stepping away from one of its core businesses to invest more in its cardio & vascular and cardiac & neuromodulation offerings. The Frisco, TX-based company said it will sell its Advanced Surgical and Orthopedics (AS&O) unit to MedPlast for $600 million. The acquisition is expected to close in the third quarter of 2018.

    Integer’s AS&O capabilities will bolster MedPlast’s portfolio of manufacturing solutions. In addition to expanding MedPlast’s offering into a broad range of metals manufacturing capabilities, including machining, stamping, coating, and metal forming, it will further strengthen MedPlast’s front-end design, development and prototyping services.

    For more on this deal, check out the story: Integer Divests AS&O Business to MedPlast for $600M

  • One of the things that made the recent speculation of Stryker making a bid for Boston Scientific most interesting is the fact that Boston Scientific has already been busy this year making tuck-in acquisitions. In March, the company said it plans to acquire NxThera for about $406 million. That deal includes $306 million upfront and up to an additional $100 million in potential commercial milestone payments over the next four years.

    Maple Grove, MN-based NxThera has developed and commercialized the Rezūm system (pictured), which is a minimally invasive therapy for the treatment of symptoms arising from benign prostatic hyperplasia (BPH). The system was cleared by FDA in 2015 and has a CE mark.

    Treatment with the Rezūm system is typically performed in a physician's office without general anesthesia and uses water vapor to remove excess prostate tissue thereby alleviating obstruction to flow, which helps reduce BPH-related symptoms.

    For more on this deal, check out the story: March Madness: Boston Scientific Continues Buying Spree.

    The company has also announced plans to acquire London, England-based EMcision for an undisclosed sum, and the company recently acquired Securus Medical Group. Securus developed a thermal monitoring system for the continuous measurement of esophageal temperature. Boston Scientific had been an investor in Securus since 2016, and the transaction price for the remaining stake not already owned consists of $40 million in cash upfront, plus up to $10 million in contingent payments based on regulatory achievements and commercial milestones.

  • Royal Philips recently said it plans to acquire EPD Solutions for about $292 million upfront. That deal, which would expand Philips' portfolio of image-guided therapy solutions, could close as early as July.

    EPD’s cardiac imaging and navigation system has received CE mark and is used in diagnostic and therapeutic procedures for cardiac arrhythmias. The system has not been cleared by FDA but is currently under review by the agency.

    For more on this deal, see the story: Philips Bets Big on Image-Guided Therapy with Latest Acquisition

  • London, England-based LivaNova has been cutting deals left and right over the past year in an effort to focus on its areas of strength, such as cardiac surgery and neuromodulation. Most recently, the company set its sights on Pittsburgh, PA-based TandemLife.

    LivaNova has agreed to pay $200 million upfront and up to $50 million more once certain regulatory milestones have been met. TandemLife's advanced cardiopulmonary temporary support solutions are expected to compliment LivNova's cardiac surgery offerings. TandemLife sells four product systems, all built around a common pump and controller. These systems include extracorporeal life support (ECLS) and percutaneous mechanical circulatory support (pMCS).

    For more on this deal, see the story: LivaNova Pumps Up Its Heart Portfolio with TandemLife Deal

  • Laborie Medical Technologies is buying Cogentix Medical for about $239 million, a price that represents a 28% premium over the target company's average 30-day closing price.

    Minnetonka, MN-based Cogentix specializes in urology devices. The firm’s products include Urgent PC, a neuromodulation system for percutaneous tibial nerve stimulation. It treats overactive bladder and associated symptoms of urinary urgency, urinary frequency, and urge incontinence on an outpatient basis.

    For more on this deal, see the story: Laborie Set to Acquire Cognetix 

  • Other deals announced this year are more difficult to rank because financial terms were not disclosed, however, they still deserve a mention on this list. One such acquisition is Johnson & Johnson's play for Orthotaxy, a private developer of software-enabled technologies, including a differentiated robotic-assisted surgery system. J&J said the technology is currently in early-stage development for total and partial knee replacement, and the company plans to broaden its application for a range of orthopedic surgery procedures.

  • Two acquisitions caught our eye this year in the telemedicine space. 

    InTouch Health, a Santa Barbara, CA-based telemedicine firm, said it will acquire REACH Health, an Alpharetta, GA-based telemedicine software company.  Shortly after the deal was announced, Boston, MA-based American Well, reported its agreement to acquire Avizia, a prominent player in the acute care telehealth space. Financial terms were not disclosed for either deal.

    For more on these two deals, see the story: A Tale of Two Telehealth Acquisitions

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