Medtech in a Minute: Kicking off 2023 with Spinoffs, M&A, and More

Catch up on the latest medtech news – in one minute or less.

Amanda Pedersen

January 9, 2023

2 Min Read
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Zimmer Biomet 'Embodies' the M&A Spirit

Zimmer Biomet is already flexing its M&A muscles in 2023 with a deal valued at $275 million. The company has agreed to pay $155 million at closing and up to an additional $120 million in milestone payments over a three-year period for a private company called Embody. The acquisition is expected to strengthen Zimmer Biomet's growing sports medicine portfolio and also supports the continued transformation of Zimmer Biomet.

Baxter Joins the Spinoff Revolution

Baxter International plans to spin off its renal care and acute therapies businesses into an independent, publicly traded company. This continues an industry trend from 2022 of large companies spinning off pieces in the name of portfolio management. Baxter's news coincides with the completion of GE Healthcare's spin from its previous parent company to become a standalone company in 2023.

And in case you missed our last Medtech in a Minute report...

Medtronic Hits a Huge Hugo Milestone

Medtronic has hit another milestone for its Hugo robotic-assisted surgery system. The company has enrolled the first patient in the Expand URO US clinical trial. The robotic-assisted prostatectomy procedure was performed by Michael R. Abern, MD, at Duke University Hospital in Durham, NC, who called it "an exciting moment" as the technology provides many benefits within his specialty of urology. The prospective, multi-center, single-arm trial will evaluate the safety and performance of Hugo for urologic procedures, which are one of the most commonly performed procedures using robotic-assisted surgery. Medtronic intends to use the Hugo in the study for urologic procedures including radical prostatectomy, radical cystectomy, and nephrectomy (partial or radical procedures). The U.S. trial follows an FDA investigational device exemption and will enroll up to 122 patients at six sites across the country.

Rumor Has It, Medtronic Spin-Offs Are a Hot Commodity

The latest medtech rumor suggests Siemens Healthineers and GE Healthcare are both interested in businesses Medtronic is in the process of spinning into a new company. Medtronic revealed plans in October to spin its patient monitoring and respiratory interventions businesses into a new company. Combined, these businesses generated about $2.2 billion last fiscal year, representing about 7% of total Medtronic revenue. Those spin-off plans could turn into a sale instead, however, according to recent news reports citing "people close to the matter." The reports suggest that Medtronic is open to a potential sale and the businesses could be valued at more than $7 billion.

M&A Picks Up Steam After a Slow 2022

Merger and acquisition (M&A) activity has been sluggish through most of 2022, but appears to be picking up steam as the year comes to a close. One recent example is Tandem Diabetes Care's announcement that it is acquiring AMF, the company that developed the Sigi Patch Pump. While M&A activity has been slow in 2022, the year has been quite busy otherwise for companies in the diabetes tech space.

About the Author(s)

Amanda Pedersen

Amanda Pedersen is a veteran journalist and award-winning columnist with a passion for helping medical device professionals connect the dots between the medtech news of the day and the bigger picture. She has been covering the medtech industry since 2006.

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