LivaNova Makes Major Changes

Following the recent decision to divest its heart valve business, LivaNova is now making what it calls “a series of enhancements” to its governance. LivaNova came under pressure earlier this year after PrimeStone Capital penned an open letter urging the company to refocus its capital on the neuromodulation business, divest its cardiopulmonary business, and either sell or close its heart valves business. The investor also recommended that the board appoint a new chairman and hire a new CFO. A medtech analyst later suggested that the sum of LivaNova's parts were worth significantly more than its current value, and that value could be created by breaking up the company.

And in case you missed last week's Medtech in a Minute reports ...

Boston Scientific Divests Specialty Pharma Business

Boston Scientific is whittling down the non-device portions of its BTG acquisition with another divestiture. The company agreed to sell the BTG Specialty Pharmaceuticals business for $800 million in cash to Stark International Lux, and SERB SAS. The deal is expected to close in the first half of 2021 and includes the transfer of about five facilities and about 280 employees worldwide.

LivaNova Divests Heart Valve Business

LivaNova is selling its heart valve business to Gyrus Capital investment firm for $73 million. The divestiture is an attempt to bring LivaNova’s focus back squarely on its neuromodulation and cardiovascular businesses, and comes at a time when the company has been urged to make some massive changes. The deal is set to close in the first half of 2021.

Zimmer Biomet Is Fired up and Ready to Buy

Zimmer Biomet has been quietly reving up its M&A engine in the past month, most recently with a deal to acquire A&E Medical for up to $250 million in cash. The company agreed to pay $150 million at closing and $100 million in cash payable in 2021. A&E Medical has a portfolio of sternal closure devices – including sternal sutures, cable systems, and rigid fixation – along with a range of single-use complementary temporary pacing wire and surgical punch products. While it hasn't drummed up a lot of fanfare over its recent M&A activity, this deal acqually represents Zimmer Biomet's third recent acquisition. During its third-quarter earnings call, the company noted the acquisition of both Incisive and Relign for $80 million upfront and another $98 million in deferred and milestone payments.