Say hello to MassDevice +5, a bite-sized view of the top five medtech stories of the day. This feature of MassDevice.com’s coverage highlights our 5 biggest and most influential stories from the day’s news to make sure you’re up to date on the headlines that continue to shape the medical device industry.
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5. Vention acquires nitinol-wire component maker Lithotech Medical
Vention Medical said today that it acquired Israeli nitinol wire component maker Lithotech Medical. The acquisition grows Vention’s portfolio of advanced components and tech for the development and manufacturing of medical devices.
“Partnering with this talented group of nitinol experts expands our portfolio of advanced components and technologies as well as our applications expertise,” Tom Testa, president of Vention’s advanced technologies business, said in prepared remarks. “Together, we can further provide more leading-edge technologies to advance our customers’ medical device innovations faster and more cost effectively.” Read more
4. Edwards Lifesciences closes $690m Valtech Cardio buy
Edwards Lifesciences said yesterday that it closed the $690 million buyout of Valtech Cardio and most of the heart valve repair technologies it’s developing.
Valtech makes the Cardioband device, which is designed to reshape the mitral valve using specially designed anchors. Read more
3. Report: IRS agrees to slash Medtronic’s $1.4B transfer pricing tax tab by an order of magnitude
The U.S. Internal Revenue Service reportedly agreed to drastically slash the amount it claims Medtronic owes on loans between its subsidiaries, from a potential $1.36 billion to just $14 million.
Last summer, a federal tax judge found for the Fridley, Minn.-based company in its lawsuit against the IRS over the dispute, which involves “transfer pricing” among the company’s various units during the tax years 2005 and 2006. The tax bureau claimed Medtronic owed income tax of $548.2 million for 2005 and $810.3 million for 2006; the Fridley, Minn.-based company disputed the bill and took the case to the U.S. Tax Court. Judge Kathleen Kerrigan found in June that Medtronic proved that the IRS was “arbitrary, capricious, or unreasonable” in its interpretation of the transfer pricing for its Puerto Rico subsidiary. Read more
2. Report: Trump considers ex-Mela Sciences CEO Gulfo for FDA chief
A name familiar to the medical device industry has surfaced as a possible nominee to lead the FDA: the Trump administration is reportedly mulling Dr. Joseph Gulfo, the former CEO of Mela Sciences (now Strata Skin Sciences), for FDA commissioner.
Dr. Stephen Ostroff is leading the federal safety watchdog on an interim basis, after the resignation of Dr. Robert Califf Jan. 20 ahead of last week’s inauguration. Early speculation had Jim O’Neill, a libertarian and Silicon Valley investor with no medical experience, as the leading candidate to replace Ostroff. O’Neill has made controversial statements about the federal safety watchdog, including in 2014 when he said that the agency should no longer evaluate whether medical devices or drugs are effective when considering them for approval. That statement was viewed harshly by experts, with some saying that it demonstrates how O’Neill’s lack of medical experience could be a problem. A medical background is usually considered a prerequisite for the position as FDA chair. Read more
1. Johnson & Johnson mulls ‘strategic options’ for diabetes business
Johnson & Johnson said today that it’s mulling the proverbial “strategic options” for its diabetes business, including the LifeScan, Animas and Calibra Medical brands.
“Strategic options may include the formation of operating partnerships, joint ventures or strategic alliances, a sale of the businesses, or other alternatives either separately or together,” the healthcare conglomerate said in reporting its 4th-quarter and full-year earnings this morning. “All options will be evaluated to determine the best opportunity to drive future growth and maximize shareholder value. There can be no assurance that this process will result in any transaction or other strategic alternative of any kind.” Read more
