Medtronic-Covidien merger will rival JNJ medical device operations | The week in medtech M&A

Seven questions raised by Medtronic's $43B Covidien acquisition

June 18, 2014 by Brad Perriello

With combined annual revenues at the $27 billion mark, the Medtronic-Covidien combination will rival Johnson & Johnson’s medical device operation in scale.

Along with another pending mega-deal, the $13 billion acquisition of Biomet by orthopedics rival Zimmer, the MDT/COV deal changes everything for the medtech industry, from small-cap players to the largest companies in the field. Read more

Medtronic, Covidien merger: Good or bad for medtech innovation?

June 19, 2014 by MassDevice

Let’s be honest – the headlining acquisition of Covidien by Medtronic may go down as the most boring deal of 2014, unless of course you are an international tax accountant. The swirling buzzwords are inversion, offshore cash, G&A, and hospital contracts. Please wake me up when it’s over. Yet it may be the unintended consequences of this deal that are the real story, in particular the implications for med tech innovators. The real story won’t really be known for months or even years, despite Omar Ishrak’s reassuring pronouncements that the merger will “accelerate” investments in R&D.

We at S2N decided an old-fashioned pro-con debate was in order. Question: Is the big fat marriage of MDT and COV good for Innovation? Read more

Medtronic, Covidien merger: Mass. Gov. Deval Patrick says he's had no contact with either company

June 18, 2014 by Brian Johnson

When media reports of the massive, $42.9 billion merger between Medtronic and Covidien surfaced last weekend, Min. Gov. Mark Dayton received personal assurances from Medtronic CEO Omar Ishrak that the medical device company would not only keep its headquarters in the North Star State, but would be increasing its local presence.

In Massachusetts, where Covidien houses its corporate headquarters and more than 1,800 employees, state officials told MassDevice.com today that they have yet to be contacted by either company about the combined companies’ presence in the Commonwealth. Read more

Volcano closes $117M AtheroMed buy

June 18, 2014 by Brad Perriello

Volcano said yesterday that it closed the buyout of AtheroMed and its Phoenix atherectomy catheter system, paying out roughly $116.5 million in cash but netting about $1.7 million in cash on hand from AtheroMed.

The deal includes a $15 million milestone payable upon 510(k) clearance from the FDA before Nov. 15 for AtheroMed’s 2nd-generation Phoenix system, according to a regulatory filing. Read more

Incubator group buys prostate treatment tech from Endo Health

June 20, 2014 by Brad Perriello

An Israeli medical device incubator said it paid an unspecified amount for the R&D product it co-developed with Endo Health Solutions.

Trendlines Group said it closed the acquisition of intellectual property it and Endo developed to diagnose and treat prostate cancer. Read more

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