Total medical devices industry M&A deals in Q3 2020 worth $89.65bn were announced in the US, according to GlobalData’s deals database. The value marked an increase of 4882.8% over the previous quarter and a rise of 2617.5% when compared with the last four-quarter average of $3.3bn. The US held a 98.3% share of the global medical devices industry M&A deal value that totalled $91.21bn in Q3 2020. In terms of deal activity, the US recorded 57 deals during Q3 2020, marking a rise of 11.8% over the previous quarter and a rise of 3.6% over the last four-quarter average.
Epidarex Capital (“Epidarex”), a transatlantic life science venture firm, is pleased to announce its second value realisation this quarter with the acquisition of its portfolio company Sirakoss by OssDsign, a Swedish medtech company, for an initial cash consideration of USD 11 million plus milestone and royalty payments. Sirakoss has successfully developed Osteo3 ZP Putty, a nanosynthetic bone graft substitute to facilitate bone repair, which recently received 510(k) marketing clearance from the US Food and Drug Administration (FDA).
Stryker (NYSE: SYK) announced today that all required regulatory approvals have been obtained for the previously announced cash tender offer for all outstanding ordinary shares of Wright Medical Group N.V. (NASDAQ: WMGI) by Stryker B.V., an indirect, wholly owned subsidiary of Stryker. The tender offer is being made pursuant to the purchase agreement, dated November 4, 2019, among Stryker, Stryker B.V. and Wright Medical. The U.S. Federal Trade Commission voted to approve the transaction on November 3, 2020, and the UK Competition and Markets Authority approved the transaction earlier today. In connection with obtaining the required regulatory approvals for the transaction, as previously announced, Stryker has agreed to divest its STAR total ankle replacement product and related assets and finger joint replacement products.
Medical-device associations are urging CMS to withdraw its proposal changing how Medicare determines if a service or item will be covered. In a proposed rule released in late August, CMS would modify Medicare’s long-standing standards for coverage. Currently, CMS considers a service for coverage if it’s a recognized Medicare benefit and “reasonable and necessary” for treatment or diagnosis, which isn’t currently defined. CMS is proposing to define the “reasonable and necessary” stipulation as meaning an item or service is safe and effective, not experimental and appropriate. CMS then gave appropriateness several definitions including if a service or item is currently covered by commercial insurance. Comment letters for the proposed rule were due Monday and stakeholders are pushing back.
Resonetics announced today that it has acquired the medical business of Hutchinson Technology, Inc. (HTI). The HTI Medical business, based in Hutchinson, Minnesota, has developed a number of proprietary manufacturing processes to fabricate and assemble tight-tolerance, metal components for market-leading devices used to seal vessels in many types of surgery. The company has industry-leading processes to chemically etch blades, create ceramic features on metal substrates and to fabricate miniaturized electromechanical sensors.
Coloplast announced today that it has completed the acquisition of Nine Continents Medical, Inc., an early stage company pioneering an implantable tibial nerve stimulation treatment for over-active bladder. The acquisition price consists of USD 145 million upfront cash payment and an additional contingent future milestone payment. Founded in 2014, Nine Continents Medical, Inc. is a privately held company that has developed an innovative solution for over-active bladder (OAB), a condition characterized by a range of symptoms including the need to urinate more frequently, increased urgency, incontinence or leakage, and a need to urinate at night.
Arcline Investment Management (“Arcline”), a growth-oriented private equity firm, today announced that it has acquired a controlling stake in SYNEO from Rockwood Equity. SYNEO is a vertically-integrated machine, tooling and services company focused on the interventional medical device industry as well as specialty “press-fit” printed circuit board applications. The Company has thousands of automation systems installed with leading medical device OEMs and contract manufacturers globally, and supports its installed base with industry leading tooling and services from its manufacturing facilities in West Palm Beach, Florida and Angleton, Texas, as well as its forward-deployed sales and service offices in Galway, Ireland and Shenzen, China.
Paramit Corporation announced today that as part of its planned strategic expansion into Europe, it has agreed to acquire Austrian-based S.I.E. SOLUTIONS. Paramit, headquartered in Silicon Valley with operations in California and Malaysia, designs and manufactures electronics based medical devices and life science instruments, while S.I.E SOLUTIONS, headquartered in Lustenau, Austria, is a leading designer, manufacturer, and provider of embedded technology solutions to customers across the healthcare and security technology industries.
Surgalign Holdings, Inc. (Nasdaq: SRGA), a global pure-play spine company focused on advancing spine surgery including through the application of digital technologies to improve patient outcomes, announced Friday the completion of the acquisition of Holo Surgical Inc., (‘Holosurgical’), a Chicago-based private technology company developing the revolutionary Augmented Reality and Artificial Intelligence platform (‘ARAI™’). Under the terms of the agreement, at the close of the transaction, Surgalign paid $30 million in cash and issued 6.25 million shares of Surgalign common stock which were valued at approximately $12 million, based on the volume-weighted average trading price of Surgalign’s shares of common stock during the five trading days ended September 25, 2020. In addition, further consideration valued at up to $83 million may be paid in stock and cash upon achievement of certain milestones.
Havencrest Capital Management, a Dallas-based healthcare private equity firm focused on partnering with founder- and entrepreneur-led businesses across the United States, announced today the completion of its acquisition of ThermoTek, Inc. (“ThermoTek” or the “Company”), a leading designer and manufacturer of temperature management devices. Founded in 1993 and based in Flower Mound, TX, ThermoTek provides a broad range of temperature management solutions to the medical and industrial end markets, specifically cold compression devices used in post-orthopedic surgery rehabilitation and cooling units used in industrial applications.
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