Could Medtronic Have Better Spent $43 Billion?
Paul Nouri, CFP
Paul Nouri, CFP
Growth Needs Resuscitation, But Medtronic Still Looks Like A Value
Stephen Simpson, CFA
Stephen Simpson, CFA
Mon, Jun. 27, 7:37 AM
- Medtronic (NYSE:MDT) will acquire HeartWare International (NASDAQ:HTWR) for $58 a share in cash for a total of $1.1B. The deal is expected to close no later than October.
- HeartWare's flagship product is the HVAD System, the world's smallest full-support ventricular assist device (VAD). It also has multiple technologies in development designed to offer progressively less-invasive mechanical circulatory support options for patients with end-stage heart failure. According to Medtronic, the global VAD market is ~$800M with anticipated long-term high-single/low-double-digit growth.
- Medtronic maintains its fiscal 2017 revenue and earnings guidance. The acquisition should be EPS accretive in year three. HeartWare will be part of its Cardiac Rhythm & Heart Failure unit within the Cardiac & Vascular Group.
- HeartWare is up 91% premarket on increased volume.
Wed, May 18, 8:42 AM| Wed, May 18, 8:42 AM | 1 Comment
Aug. 31, 2015, 6:23 PM
- Medtronic (NYSE:MDT) has acquired Medina Medical, a Silicon Valley-based maker of device used to treat brain cerebral aneurysms and other vascular abnormalities, for $150M up-front plus milestone payments.
- Medina's product is described as "an intrasaccular 3D mesh implant that fills the inside of a brain aneurysm," and which "provides a scaffold across the aneurysm neck; conforms to the shape of the aneurysm; and reduces blood flow." It's available in the EU, but not yet in the U.S.
- "Medina Medical`s breakthrough technology makes it a natural fit with our Neurovascular portfolio, further strengthening our hemorrhagic stroke portfolio," says Medtronic exec Brett Wall. Last week, Medtronic announced it's buying valve replacement device maker Twelve for $458M.
Aug. 25, 2015, 10:07 AM
- Medtronic (MDT +1.2%) agrees to acquire privately-held valve replacement device maker Twelve Inc. for $458M.
- Twelve is focused on developing a transcatheter mitral valve replacement device, an area MDT hopes will be a source of growth.
- MDT says it expects the net impact from the deal to be earnings neutral, as the company intends to offset the dilutive impact of the transaction.
Jul. 13, 2015, 9:00 AM
- Medtronic (NYSE:MDT) acquires Carlsbad, CA-based RF Surgical Systems for $235M. RF focuses on the detection and prevention of retained surgical items (e.g., sponge, gauze, towel) after surgical procedures. The company's product, designed as an adjunct to manual counting methods, uses low radio frequency to track and detect items embedded with an RF tag.
Jun. 19, 2015, 5:39 PM
- Medtronic (NYSE:MDT) acquires Sunnyvale, CA-based Aptus Endosystems, a privately-held medical device firm developing advanced technology for endovascular aneurysm repair (EVAR) and thoracic endovascular aneurysm repair (TEVAR). The transaction value is ~$110M. No additional financial terms are disclosed.
Jun. 19, 2015, 10:54 AM
- Medtronic (MDT +0.6%) acquires Cleveland, OH-based CardioInsight for ~$93M in a debt-free transaction of $75M in cash plus the retirement of an outstanding $25M Medtronic loan less $7M in CardioInsight cash. Additional terms are not disclosed.
- CardioInsight's principal product is the ECVUE system, a non-invasive mapping system for electrical disorders of the heart.
Jun. 18, 2015, 7:20 AM
- Medtronic (NYSE:MDT) invests in Arsenal Medical subsidiary Arsenal AAA with an option to acquire the firm if certain milestones are achieved. Financial terms are not disclosed.
- Arsenal AAA is developing a proprietary foam and delivery mechanism to treat aneurysms. The foam is designed to stabilize an aneurysm and reduce the risk of an endoleak by filling the aneurysmal sac around an endograft (a stent that is placed inside the thoracic aorta to alleviate the pressure). This is important in type II endoleaks where the anatomy of the branch vessels can cause persistent blood flow within the aneurysmal sac even in the presence of an endograft. Arsenal's foam can be used with any commercially available endograft and allows for the preventive treatment of endoleaks.
Apr. 13, 2015, 6:29 PM
- Looking to grab a bigger chunk of a burgeoning healthcare analytics market by offering more industry-specific solutions, IBM is buying Phytel, a provider of cloud-based patient data aggregation/analysis software, and Explorys, provider of a massive clinical database (said to consist of 315B datapoints) and a slew of analytics apps that run on top of them. Terms are undisclosed.
- IBM declares Phytel will help it give healthcare providers "insights into patient health from data about patient behaviors and their engagement with care plans," and that Explorys will "accelerate the delivery of IBM Health Cloud and IBM Watson cognitive solutions to model and apply medical evidence and large scale analytics to data."
- Both companies are being added to a new Watson Health unit based out of Boston. The business aims to provide software/services that can surface insights from large volumes of anonymous personal health data. As part of the effort, Big Blue is launching Watson Health Cloud, a platform that allows this data to be "anonymized, shared and combined with a dynamic and constantly-growing aggregated view of clinical, research and social health data."
- IBM's partnership with Apple (NASDAQ:AAPL) has been expanded to cover Apple's HealthKit (health/fitness data) and ResearchKit (medical research) frameworks, via Watson and Health Cloud. The latter will provide a data storage/aggregation platform for iOS apps using HealthKit and ResearchKit. In addition, IBM will "build a suite of enterprise wellness apps using HealthKit."
- Also: 1) IBM is partnering with Medtronic (NYSE:MDT) to create diabetes management solutions that pair Medtronic's devices (and the data they produce) with IBM's analytics and cognitive computing tools. 2) IBM is partnering with Johnson & Johnson (NYSE:JNJ) to "create intelligent coaching systems centered on preoperative and postoperative patient care, including joint replacement and spinal surgery."
Apr. 2, 2015, 10:59 AM
- Medtronic (MDT +0.4%) acquires Dutch clinic and research center Diabeter, a provider of comprehensive and individualized care for children and young adults with diabetes that currently manages over 1,500 type 1 patients. Terms are not disclosed.
- The buy marks Medtronic's first foray into a diabetes integrated care model. It intends work with Diabeter to further develop its model and then apply it around the world. It is pursuing similar strategies in heart failure and cardiology.
- Diabeter will operate as part of Medtronic's Diabetes Services & Solutions business unit.
Mar. 27, 2015, 9:30 AM
- Medtronic (NYSE:MDT) completes its acquisition of privately-held Sophono, a developer of magnetic hearing implants. Terms are not disclosed. The business will be part of Medtronic's Surgical Technologies division within the Restorative Therapies Group segment.
- Sophono's magnetic bone conduction hearing implants have been placed in more than 4,000 patients in 42 countries. They are indicated for patients at least five years of age with single-sided deafness or conductive, mixed hearing loss.
- According to the World Health Organization, disabling hearing loss affects 360M people worldwide.
Feb. 23, 2015, 9:38 AM
- Medtronic (MDT +0.2%) acquires privately-held Elizabethton, TN-based Advanced Uro-Solutions for an undisclosed sum. The company's lead product is the NURO percutaneous tibial nerve stimulation system for the treatment of overactive bladder (OAB). The 510(k)-cleared device consists of a small external stimulator and a single, reusable lead that provides temporary stimulation to the tibial nerve. Medtronic plans to launch the system in the U.S. in the next 12 months.
- OAB affects ~17% of women and 16% of men in the U.S.
Jan. 27, 2015, 8:23 AM
Nov. 28, 2014, 10:45 AM
- Medtronic (MDT +1.3%) secures EU approval for its $43B acquisition of Covidien plc (COV +1%) contingent on, as expected, Covidien selling Stellarex, its drug-coated angioplasty balloon. Spectranetics (SPNC +1.9%) agreed to purchase Stellarex several weeks ago for $30M. The FTC recently gave its blessing to the transaction as well.
- Previously: FTC clears Medtronic/Covidien marriage
- Previously: Spectranetics buys Covidien's DCB platform
Nov. 26, 2014, 3:57 PM
- The Federal Trade Commission approves the merger between Medtronic (MDT +1%) and Covidien plc (COV +1.2%) with the proviso that Covidien divest its drug-coated catheter business before completing the transaction. Covidien agreed to sell the business for $30M to Spectranetics (SPNC +1%) several weeks ago.
- Previously: Medtronic buying Covidien for $42.9B
Nov. 12, 2014, 4:53 AM
- Medtronic (NYSE:MDT) submitted concessions last Friday in a bid to secure regulatory approval for its $43B acquisition of Covidien (NYSE:COV), says the European Commission.
- The EU antitrust authority will decide by Nov. 28 whether to clear the deal.
- A takeover of its Irish rival would reduce Medtronic's overall global tax burden, although it has said that the takeover is not an "inversion" deal for tax reasons.
Medtronic Plc engages in the medical technology-alleviating pain, restoring health, and extending life for millions of people around the world. Its primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health... More
Industry: Medical Appliances & Equipment
Country: United States
Other News & PR