Amazon Reveals Another Piece of Its Healthcare Puzzle

Amazon has been making plays in healthcare for some time now, giving us pieces of the puzzle here and there while keeping us guessing about the bigger picture. This week we got a key puzzle piece, and that picture is finally coming into focus. The tech giant plans to acquire One Medical, a national primary care organization described as "human-centered" and "technology powered," for $3.9 billion.

Invitae's Drastic Downsizing Decision

More than 1,000 Invitae employees will be getting pink slips as part of the genetics company's massive restructuring plan. The company said it will also exit some of its under-performing businesses, and reduce the number of countries it serves from more than 100 to a mere dozen. The plan comes as Kenneth Knight takes over as CEO, succeeding Sean George. These actions are expected to generate $152 million in savings, Knight said. The entire restructuring plan is expected to deliver about $326 million in annual cost savings by the end of 2023.

GE Plays the Name Game

GE has revealed the names of its spinoffs as it prepares to split into three independent companies: GE Healthcare, GE Aerospace, and GE Verona. GE Vernova has the most radical name change and will focus on renewable energy, power, digital, and energy financial services. GE Healthcare will sport the color purple for its brand, representing compassion.

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

Medtronic Lays Groundwork for Future CathWorks Deal

Medtronic has laid the groundwork to potentially acquire CathWorks, an Israeli company set on transforming the way coronary artery disease (CAD) is diagnosed and treated. CathWorks has developed the FFRangio System, a non-invasive diagnostic tool turns routine angiogram images into color-coded 3D renderings of blood flow in the heart's arteries. Physicians can then use the images to determine whether a stent is needed. Through a new agreement, Medtronic will invest up to $75 million and help promote CathWorks' FFRangio System in the United States, Europe, and Japan, where the device is commercially available. A separate agreement gives Medtronic the option to acquire the Kefar Sava, Israel-based company once certain undisclosed milestones are met. CathWorks will also have the right to compel Medtronic to acquire it if Medtronic chooses not to exercise its option. The acquisition option agreement will expire in July 2027 and would be valued at up to $585 million plus potential undisclosed earn-out payments after the deal is done.

Abbott Wins Breakthrough Device Designation

Abbott Laboratories has won breakthrough device designation for its deep brain stimulation system to be investigated in the use of treatment-resistant depression. The company’s system has traditionally been used to help control symptoms for people with movement disorders, such as Parkinson’s disease and essential tremor.

Bioventus Completes CartiHeal Deal

After nixing its original financing plans and amending the payment structure of the deal, Bioventus has completed its acquisition of CartiHeal. FDA approved CartiHeal's Agili-C implant in March, through the breakthrough device designation pathway. It is indicated to treat International Cartilage Repair Society grade III or above knee–joint surface lesions, with a total treatable area of 1-7 cm for patients without severe osteoarthritis (Kellgren-Lawrence grade 0-3).