Covidien Continues to Shop Pre-Medtronic Merger

Nancy Crotti

August 28, 2014

2 Min Read
Covidien Continues to Shop Pre-Medtronic Merger

Covidien announced another addition to its peripheral vascular business Thursday, the second this week, in anticipation of its $43 billion merger with Medtronic.

In the latest transaction, the Dublin-based company acquired Sapheon, Inc. (Morrisville, NC) for an undisclosed sum. Sapheon develops and manufactures the VenaSeal system, which uses a medical adhesive to close the great saphenous vein in patients with varicose veins and chronic venous insufficiency. The minimally invasive procedure involves insertion of a catheter with ultrasound guidance, and often allows patients to resume normal activities immediately, according to a statement by Covidien. It requires no tumescent anesthesia, which requires multiple local injections, and often causes less bruising than traditional thermal energy treatment.

More than 2,000 patients have undergone treatment with the VenaSeal system, which is approved in Canada, Europe and Hong Kong. The system is limited to investigational use in the U.S., but Sapheon is seeking premarket FDA approval through a randomized clinical trial.

Just days ago, Covidien announced it had purchased Reverse Medical Corp. (Irvine, CA) a small, privately held company that makes devices to manage acute stroke and neurovascular disease. Terms were not disclosed.

Medtronic has also been buying up companies in anticipation of the merger. The Fridley, MN-based company said Wednesday that it had closed on its purchase of the remainder of Italian hospital services company NGC Medical S.p.A., in a deal that values the company at $350 million. The deal comes on the heels of Medtronic acquiring Sapiens Steering Brain Solution, an Eindhoven, Netherlands-based deep-brain stimulation technique company, for $200 million.

Medtronic already had a 30% ownership stake in NGC, which manages cardiovascular suites, operating rooms and intensive care units at nearly 30 hospitals across Italy. NGC is rapidly expanding its service offerings throughout Europe, the Middle East and Africa. It will serve as the managed services arm for Medtronic's Hospital Solutions business.

The Sapiens acquisition aligns with Medtronic's expansion in the world of neurostimulators.

Nancy Crotti is a contributor to Qmed and MPMN.

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About the Author(s)

Nancy Crotti

Nancy Crotti is a frequent contributor to MD+DI. Reach her at [email protected].

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