Boston Scientific is scrapping its original plan to buy a majority stake in M.I. Tech, a Korean surgical tools company, for $230 million. Instead, the company will purchase a minority stake of around 10% that will go through later in 2023. Boston Sci put the change of plans down to an inability to obtain required global regulatory approvals in some countries.
“As a company, we actively pursue opportunities to bring innovative technologies to our customers around the world,” a representative from Boston Sci told MD+DI. “Our agreement to purchase the majority stake of M.I.Tech Co., Ltd, from Synergy Innovation Co., Ltd, required global regulatory approvals that we were not able to obtain in some countries. For this reason, we have terminated the original agreement and signed a new agreement to purchase a minority stake (9.9%) of M.I.Tech. We will continue offering the company’s Hanarostent technology in Japan through an extended distribution agreement.”
Specifically, the Federal Trade Commission seemed to take credit for the news, writing in an issued statement, “I am pleased that Boston Scientific and M.I. Tech have abandoned their proposed transaction in response to investigations by FTC staff and our overseas enforcement partners. The FTC will not hesitate to take action in enforcing the antitrust laws to protect patients and doctors. I would like to thank the entire FTC team for their excellent work on this matter.”
In June 2022, the company originally announced it would acquire a 64% stake in M.I. tech and expected to close the transaction by the end of the year, contingent on global regulatory approval.
"M.I.Tech is an innovator in non-vascular stent development, with product offerings that complement our existing stent portfolio, including the differentiated Axios stent and Electrocautery Enhanced Delivery System and the flexible and conformable Agile esophageal stent system," said Art Butcher, executive vice president and group president, MedSurg and Asia Pacific, at Boston Sci, at the time of the original announcement. "We are committed to investing in technologies that advance care for patients around the world and are eager to work more closely with M.I.Tech to expand their international footprint."
While the majority stake deal will not move forward as planned, the company said that they will continue to grow its relationship with M.I. Tech through its new deal. M.I. Tech’s offerings include its Hanarostent portfolio which Boston Sci has distributed in Japan since 2015. The Hanarostent, which are conformable, non-vascular, self-expanding metal stents, feature a unique hook-cross nitinol design “intended to provide a natural and flexible fit within a patient's anatomy, as well as flared ends to help prevent stent migration,” MD+DI previously reported.
As for the new minority stake deal, Boston Sci said it expects the purchase to be completed in mid-2023, subject to customary closing conditions.
“While we are disappointed that we will not complete this purchase as initially constructed, we are committed to investing in innovative, patient-centric technologies that solve unmet clinical needs and to continuing to grow our relationship with M.I.Tech,” Boston Sci told MD+DI.