Medtronic (NYSE:MDT) announced that it completed its previously announced $1.1 billion acquisition of Intersect ENT (Nasdaq:XENT).
Fridley, Minnesota-based Medtronic announced in August 2021 that it would acquire all outstanding shares of the Menlo Park, California-based sinus implant maker for $28.25 per share in an all-cash transaction.
As a result of the transaction, Medtronic acquires Intersect ENT’s Propel and Sinuva drug-eluting sinus implant product lines and technology, intellectual property and the company’s Menlo Park facility. Intersect ENT’s employees also will join Medtronic, according to a news release.
Medtronic said that former Intersect ENT brand Fiagon was divested simultaneously at close, with its Cube and VenSure products not included in the acquisition. Earlier this week, the Federal Trade Commission (FTC) issued a proposed order to require Medtronic to sell a subsidiary of Intersect ENT within 10 days of the transaction’s completion.
Per the order, Hemostasis would acquire Intersect ENT’s Fiagon business from Medtronic. Fiagon makes balloon sinus dilation products and ear, nose and throat navigation systems.
Medtronic said that Intersect ENT’s product lines and customer base will further its efforts to improve outcomes for patients with chronic rhinosinusitis (CRS). Propel and Sinuva are both bioabsorbable, steroid-eluting implants for sinus patients.
Propel implants are inserted following endoscopic sinus surgery to maintain sinus patency and provide localized steroid delivery, while Sinuva implants are designed for use in the physician’s office setting to treat nasal polyps in adult patients who have had ethmoid sinus surgery.
Sinuva implants are currently only sold in the U.S., while Propel, Propel Mini and protel Contour implants have FDA approval in the U.S. and CE mark in Europe.
“By combining Intersect ENT’s groundbreaking localized drug delivery products with the leading navigation and powered instruments of Medtronic, we can now equip physicians with the right tools for many unique patient needs,” Medtronic ENT Business President Vince Racano said in the release. “This acquisition expands our portfolio, and we can now provide a more comprehensive continuum of care for CRS patients while supporting the bold ambition of Medtronic to be the global healthcare technology leader.”
Medtronic said the acquisition falls in line with its commitment to strategic portfolio management and capital deployment. Its financial advisor for the transaction is Perella Weinberg Partners LP, with Ropes & Gray LLP acting as legal advisor. Intersect ENT’s financial advisor is Goldman Sachs, with Cooley LLP acting as legal advisor.
“We believe the market leadership and global footprint of Medtronic, coupled with enterprise resources to fuel pipeline innovation and commercialization, will advance our reach to customers and patients more quickly and serve our shared vision of improving patient access, outcomes, and satisfaction for millions of people around the world who suffer from ENT diseases,” Intersect ENT President and CEO Thomas West said. “We are thrilled to combine these two companies as we now officially work together to bring more ENT options to patients. I am especially proud of our dedicated Intersect ENT employees, whose entrepreneurial spirit and passion for innovation have driven our ability to achieve this milestone.”
