Covidien acquires Sapheon and its VenaSeal varicose vein treatment
August 28, 2014 by Brad Perriello
Covidien continued the acquisition spree by it and Medtronic ahead of their blockbuster merger today, announcing the 4th acquisition since news of their $43 billion union broke last June.
Covidien said it paid an undisclosed amount for Sapheon and its VenaSeal device, a medical adhesive designed to close off the great saphenous vein to treat varicose veins and chronic venous insufficiency. Read more
Medtronic to cover $58M tax tab for top execs in Covidien buy
August 29, 2014 by Brad Perriello
Medtronic said this week that it will cover nearly $58 million in taxes its pending, $43 billion buyout of Covidien would incur for its top executives.
U.S. tax laws impose a 15% excise tax on stock owned by executives and directors for the 6 months before and after a merger transaction. Although it’s said all along that it will offer an excise tax “gross-up” to cover executives from the tax, Medtronic revealed in an August 26 regulatory filing the details of the coverage. Read more
Report: J&J puts Cordis on the block
August 29, 2014 by Arezu Sarvestani
Healthcare giant Johnson & Johnson is looking to divest its Cordis business after years of lackluster sales for the company’s stents, catheters and other vascular devices, according to a report from the Wall Street Journal.
J&J declined to comment on the rumor, but anonymous sources told the Journal that Cordis could command a $1.5 billion to $2 billion price tag. Read more
Another Covidien shareholder sues over Medtronic deal
August 27, 2014 by Arezu Sarvestani
Covidien is under fire again as a new shareholder lawsuit accused the company of breaching its fiduciary duties in the $43 billion acquisition by Medtronic.
The Rosenfeld Family Foundation filed the lawsuit this week accusing Covidien’s leadership of short-changing shareholders by pushing the Medtronic deal without properly evaluating alternatives. Read more
Allergan accedes to special meeting, asks court to block Valeant's vote
August 27, 2014 by Arezu Sarvestani
Aesthetics devices maker Allergan is trying a new tactic to stave off a hostile takeover after being forced by major shareholder Valeant Pharmaceuticals to hold a special shareholder meeting.
Allergan asked the U.S. District Court for the Central District of California for accelerated proceedings in its motion for a preliminary injunction against Valeant, Pershing Square Capital Management and hedge fund manager William Ackman, claiming the activist investors violated insider trading laws and reaped a $1 billion benefit as a result. Pershing acquired 9.7% of AGN’s shares in April. Read more
