Report: Covidien to acquire superDimension for $350M | Wall Street Beat

March 14, 2012 By MassDevice staff Leave a Comment

Covidien (NYSE:COV) is set to close a $350 million buyout of Israeli lung diagnosis firm superDimension by the end of the week, according to Israeli business journal Calcalist.

Founded in Tel Aviv by Pinchas Gilboa, Minneapolis-based superDimension, which employs about 120 people worldwide, also has offices in Dusseldorf, Germany.

Yesterday rumors swirled on Wall Street about a possible buyout, with Johnson & Johnson (NYSE:JNJ) and Medtronic (NYSE:MDT) mentioned as potential suitors, alongside Covidien.

The company’s i-Logic electromagnetic navigation bronchoscope is used to diagnose pulmonary diseases like emphysema, cancer and tuberculosis, using a technology based on electromagnetic tracking, image processing and endoscopy. The sysem won CE Mark approval in the European Union in 2002 and 510(k) clearance from the FDA in 2004.

superDimension has drummed up about $120 million from backers, Calcalist reported, and posted sales of about $30 million last year. The company followed a $25 million funding round in September 2010 with an $11 million round a year later, according to the newspaper. Backers include Pitango, Medica Venture Partners, Orbimed, Pfizer, Axiom fund founder Efi Gildor, Evergreen, Gemini, Oxford Bioscience Partners, Mi3 and Fidelity, according to Calcalist.

"Covidien does not comment on market rumors or speculation," a spokeswoman told MassDevice.com via email.

Medtronic files for senior note offering

Medtronic (NYSE:MDT) files a prospectus with the SEC for a debt offering of senior notes it expects to issue this month. Read more

pSivida inks 2nd evaluation deal for Durasert eye implant

pSivida Corp. (NSDQ:PSDV) inked a technology evaluation deal for its Durasert implant, which is designed to deliver drugs to the back of the eye, with ophthalmic compound developer Neuron Systems. Read more

Viking Systems expands China footprint

Viking Systems (OTC:VKNG) said its Chinese distributor bought a quartet of its 3DHD Vision systems for new training centers it’s opening in the People’s Republic. Read more

BioDirection licenses Nanosys nanowire patents

Brain screening device maker BioDirection said it signed an exclusive licensing deal for Nanosys Inc.’s portfolio of nanowire patents and patent applications. Read more

Cameron Health buyout points to med-tech M&A trend

Acquirers are increasingly opting for companies that have already assumed the risk of getting regulatory approvals, rather than earlier-stage firms, as evidenced by Boston Scientific’s (NYSE:BSX) buyout of already-CE-Marked Cameron Health for up to $1.35 billion.

"It’s important to point out that this product is approved in EU today and we expect FDA approval in the first half of 2013. So this is very different from some projects that will be 4-5 years before an FDA approval and several years before an EU approval," Joe Fitzgerald, president of BSX’s cardiac rhythm management arm, told MedCity News. "This presents much nearer-term revenue and market share opportunity for Boston Scientific and it fits very nicely with our deal model of when and what it will return to our shareholders." Read more

Covidien, Kensey Nash announce dividends

Covidien (NYSE:COV) declared a quarterly cash dividend of 22.5¢ per share, payable May 7; Kensey Nash (NSDQ:KNSY) declared a cash dividend of 25¢ per share, payable May 31. Read more

GPOs: Novation, Premier ink new hospital bed, HIT and wound care products

Novation signed a deal with Linet for its Eleganza line of medical surgical beds and Multicare ICU bed; Premier Healthcare Alliance inked deals with GE Healthcare (NYSE:GE) and Philips Healthcare (NYSE:PHG) for obstetrical data management systems and signed agreements for advanced wound care with BSN Medical, Eloquest Healthcare, Integrated Healing Technologies and Irrimax Corp. Read more

Funding Roundup

Analysts’ ups and downs

Covidien (NYSE:COV): Jefferies increases price target from $57 to $61, maintains "buy" rating.
Omeros (NSDQ:OMER): Canaccord Genuity upgrades from "hold" to "buy," increases price target from $5 to $13; Deutsche Bank raises rating to "buy" from "hold," raises price target from $6 to $11.

Mojo Vision developing ‘smart’ contact lens
Mojo Vision is working with the FDA to develop a smart contact lens to help people with low vision. The lens overlays real-time contrast and lighting enhancements with zoom functionality and recently won FDA breakthrough device designation. “Receiving the Breakthrough Device Designation is a significant step in our research and development process. We look forward to… […]
FDA to EPA: Leave us out of your ethylene oxide rule
This article has been updated with comments from the FDA. The FDA has asked the Environmental Protection Agency to leave the FDA out of its proposal for stricter regulation of ethylene oxide (EtO) emissions, and the EPA complied. In an interagency comment on the EPA’s proposed rule governing commercial EtO users — which includes medical… […]
Clippart debuts stepper-controlled flow valve
Clippard recently launched a new stepper-controlled proportional valve for precision flow control. The Eclipse valve uses the industry’s most robust and powerful miniature linear actuator, according to Cincinnati-based Clippard. The patent-pending Eclipse is designed for liquid and gas delivery, medical, analytical and industrial automation requiring ultra-fine resolution and repeatability. The design also allows for custom… […]
Supporting regulatory affairs departments to address clinical requirements under new MDR
By Dietmar Falke and Jaap Laufer, Emergo Group The May 25, 2020 MDR deadline is approaching rapidly, and by now many medical device manufacturers are aware that the MDR requires the proactive collection of post-marketing clinical follow-up (PMCF) data. Get the full story here at the Emergo Group’s blog. The opinions expressed in this blog… […]
5 tips to raise funding for your medical device
Securing funding can be a long and tedious process, and medical device businesses must work to position themselves as especially attractive to potential investors to maximize success and accelerate the fundraising process. Jon Speer, Greenlight Guru According to Alejandro Cremades, author of The Art of Startup Fundraising, it can take from six to nine months… […]
FDA recognizes latest ISO 14971 as medical device consensus standard
By Mark Leimbeck and Stewart Eisenhart, Emergo Group The US Food and Drug Administration has granted Recognized Consensus Standard status to the third edition of the ISO 14071 risk management standard for medical devices and IVD products. Get the full story here at the Emergo Group’s blog. The opinions expressed in this blog post are… […]
Synaptive Medical updates Modus V surgical microscope
Synaptive Medical announced that its U.S. and Canadian Modus V robotic digital microscope now includes updates such as additional 3D visualization and voice-activated control. The Modus V is a robotically controlled digital microscope used as part of Synaptive’s BrightMatter surgical suite designed for less invasive, patient-specific approaches in complex cranial procedures. The Modus V provides similar… […]
New machine can preserve donor livers for 1 week
Researchers in Switzerland have built a perfusion machine that can preserve human livers for transplantation for a week or more, potentially slashing the number of donor livers that must be discarded due to time-related deterioration. Existing perfusion technology can preserve a donor liver for up to 24 hours. The team of surgeons, biologists and engineers… […]
Smiths Medical launches Portex tracheostomy tubes and kits
Smiths Medical this week launched its Portex polyvinyl chloride tracheostomy tube and kit portfolio. The new polyvinyl chloride (PVC) tube portfolio has options for a variety of patients, according to the company. “Our goal was to create tracheostomy tubes and kits designed to help clinicians provide the best patient care. We’re excited to offer a variety… […]
FDA clears Cleveland Clinic 3D-printed airway stents
The FDA recently cleared 3D-printed, patient-specific stents developed by a doctor at the Cleveland Clinic. Cleveland Clinic physician Tom Gildea developed the stents to keep open the airways of patients with serious breathing disorders caused by inflammation, trauma, tumors and other masses. Airway stents come in a limited number of sizes and shapes and are… […]
Boston Scientific shares drop on Q4 sales news
Shares in Boston Scientific (NYSE:BSX) dropped 8% this morning on news of disappointing fourth-quarter sales. The company’s preliminary earnings report showed sales for the quarter ended Dec. 31, 2019 coming in at $2.9 billion, below the $2.91 billion that analysts were expecting. The unaudited sales figure represents organic growth of 7.3%, missing the company’s own guidance of… […]