Medtronic (NYSE:MDT) today announced that it has entered a definitive agreement to acquire Intersect ENT (NSDQ:XENT) for $1.1 billion.
Medtronic will acquire all outstanding shares of the Menlo Park, Calif.-based sinus implant maker for $28.25 per share in an all-cash transaction. The deal is expected to close toward the end of Medtronic’s 2021–22 fiscal year, subject to the satisfaction of customary closing conditions, including receipt of regulatory clearances and approval by Intersect ENT’s stockholders.
The acquisition will expand Medtronic’s portfolio of ear, nose and throat medical devices. Intersect ENT makes the Propel and Sinuva sinus implants that open sinus passageways to deliver an anti-inflammatory steroid to aid in healing.
Intersect ENT launched its VenSure balloon sinus dilation system in the U.S. in late July and won regulatory approvals for its Propel Contour sinus implant in May.
“This acquisition directly aligns with our commitment to delivering continuous innovation that helps ENT patients,” Vince Racano, president of Medtronic’s ENT business, said in a news release. “Intersect ENT’s sinus implants are clinically proven to offer relief and healing to patients suffering from chronic rhinosinusitis. Combining this innovative technology with our established global presence and sales infrastructure will allow us to broaden our capabilities while expanding access to these valuable therapies.”
Intersect ENT’s Propel implant is primarily used in hospitals and ambulatory surgery centers. The bioabsorbable, drug-eluting implant is inserted after sinus surgery to keep passageways open. The company designed it to treat patients who suffer from chronic rhinosinusitis (CRS).
“This is an exciting day for patients suffering from CRS,” Intersect ENT president and CEO Thomas West said. “After years of pioneering technology to help patients heal following sinus surgery, we welcome the integration of Intersect ENT’s portfolio into Medtronic. We are looking forward to the global impact we can make as part of Medtronic, bringing these essential products to more patients than ever before. Thank you to our Intersect ENT employees – without you, we would not have reached this important step in our evolution.”
Shares in XENT were up more than 12% to $27.52 apiece by midday trading today. MDT ticked up to $128.39 apiece. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down slightly.
