Stryker to pay $135M for Concentric Medical

Stryker
Concentric Medical

Stryker Corp. (NYSE:SYK) agreed acquire Concentric Medical Inc. for $135 million in cash in a deal expected to close by the end of the year.

Mountain View, Calif.-based Concentric makes minimally invasive devices designed to remove the blood clots that cause ischemic stroke. If consummated, the deal will add to Stryker’s footprint in the neurovascular business, which is already sizable due to its $1.45 billion buyout of Boston Scientific’s (NYSE:BSX) neurovascular unit.

Sign up to get our free newsletters delivered right to your inbox.

Concentric launched a trial of its Trevo Retriever in February, touting the device as the first to use its Stentriever technology, “a novel method for retrieving clot from the neurovasculature.” Its Merci stroke treatment won reimbursement coverage in Japan in October 2010.

“We believe Stryker is the ideal strategic partner for Concentric and combining Concentric with Stryker’s Neurovascular division will provide opportunities to accelerate the development of technology and clinical evidence and will allow the commercial expansion of Concentric’s ischemic stroke therapy globally. Our team is excited to be joining the Stryker organization,” president and CEO Maria Sainz said in prepared remarks.

Stryker spent more than 58 percent of its cash reserves during the first quarter on the BSX acquisition. The Kalamazoo, Mich.-based medical device maker had more than $4.91 billion in working capital as of March 31, including $735 million in cash and cash equivalents. That’s a significant drop from the $6.02 billion in capital and $1.76 billion in cash it had going into 2011, reflecting the payment made to Boston Scientific Jan. 3 to close the deal, according to regulatory filings.

Stryker forked over about 12 percent of its total assets to do the deal, not including an additional $70 million it paid in charges related to the transaction.

The October 2010 announcement confirmed a deal that had been ground through the rumor mill for months. The cash deal includes another $50 million in milestone payments, contingent in part on the commercialization of the next iteration of Boston Scientific’s Target coils, which are delivered via catheter to treat hemorrhagic stroke. The milestones also depend on the successful transfer of manufacturing operations, expected to take about two years.

The BSX unit posted sales of about $348 million in 2009, but revenues have been on the slide for the better part of two years. At the time, Stryker officials said the acquisition would make the company a major player in the nearly $1 billion neurovascular market.

RSS From Medical Design & Outsourcing

  • Athermal laser machining cuts bioabsorbable polymers and more
    A the recent MD&M East trade show in New York, Norman Noble, discussed the capability of athermal laser manufacturer. The company has developed the Noble S.T.E.A.L.T.H. (System To Enable Ablation Laser Technology Haz-free). The athermal laser machining process was developed to create precise features in any material, including bioabsorbable polymers, shape memory metals and other […]
  • Exciting possibilities for metallic glass in the medical device world
    Researchers are exploring the potential of metallic glass as a versatile, pliable material that is stronger than steel, with a bevy of possible medical device applications. Yale University engineers have discovered a unique method for designing metallic glass nanostructures across a wide range of chemicals, a technique that could have applications for everything from watch […]
  • Strong Precision Technologies’ medical divisions to unify under MedTorque brand
    Strong Precision Technologies announced on July 2, 2015, that its two medical divisions will now go to market under a single brand, MedTorque. The move reflects the increasing integration of the division formerly known as Inland Midwest with MedTorque, its sister division in Kenosha, WI. “We will continue providing our customers with the personalized level of service […]
  • Olympus offers next-day product replacement guarantee for medical devices
    Olympus, a medical and surgical procedures solutions company, announced that it is guaranteeing next-day replacements for surgical equipment at no additional charge. Olympus is the first surgical product manufacturer to offer this type of guarantee. The service became available to customers with an Olympus Full Service Agreement earlier this year. “Canceled procedures can be costly for healthcare facilities […]
  • More accurate prediction on prognosis in multiple myeloma from SkylineDx
    SkylineDx, a biotechnology company specializing in the development and commercialization of genetic tests, is launching its MMprofiler assay. This test enables clinicians to more accurately predict the prognosis of patients with multiple myeloma (bone marrow cancer) than traditional methods. The MMprofiler measures the activity of 92 genes which are directly or indirectly related to the […]
  • Flint Mobile swaps card reader for camera, accept mobile payments anywhere
    Flint Mobile, the swipe-free mobile payments app, has significantly expanded its payment management and loyalty capabilities for small, service-centric businesses, like the ones run by on-the-go medical equipment professionals. The toggle-free mobile technology makes the process quite simple for both parties, as all transactions are conducted through the mobile device’s camera without the need of any external […]
  • Should scientists be allowed to genetically alter human embryos?
    Scientists have at their disposal, a way to explore the possible prevention of genetic diseases before birth. But should they? Currently, the most promising path forward involves editing the genes of human embryos, a procedure threaded with controversy. An article in “Chemical & Engineering News” (C&EN), the weekly newsmagazine of the American Chemical Society (ACS), parses […]
  • Tackling chronic sinusitis by addressing underlying factors
    The stuffy noses and sinus pressure of head colds are uncomfortable, but for most people, they go away within days. For those with chronic sinusitis, however, those symptoms and others drag on for weeks. Now scientists are onto a potential new therapy that could address one of the underlying factors associated with the condition. They […]
  • Implantable “artificial pancreas” could help diabetes patients control their blood sugar
    Living with Type 1 diabetes requires constant monitoring of blood sugar levels and injecting insulin daily. Now scientists are reporting in the American Chemical Society (ACS) journal, “Industrial & Engineering Chemistry Research,” the development of an implantable “artificial pancreas” that continuously measures a person’s blood sugar or glucose level and can automatically release insulin as […]
  • Drug Deactivation program roll out to all facilities for safe disposal of unused prescription medications
    Verde Technologies announced that New Brighton-based Meridian Behavioral Health, the largest for-profit substance abuse and addiction treatment group in Minnesota, has become its most recent partner in the deactivation and safe disposal of prescription medications including methadone. Meridian is the first behavioral health group to roll out the Deterra Drug Deactivation System to all 17 […]
  • Lophius Biosciences introduces T-activated ImmunoScan Cocktail
    Lophius Biosciences announced the commercial launch of T-Track ImmunoScan and T-activated ImmunoScan Cocktail. Based on a proprietary and very specific cocktail of stimulants in combination with the Company’s T-activation technology, T-Track ImmunoScan and T-activated ImmunoScan Cocktail specifically target different cell types involved in both the adaptive and innate immune system. T-Track ImmunoScan and the T-activated […]

Leave a Reply