Medtronic’s latest acquisition is nothing to sneeze at, with an offer of more than $1 billion for a handful of devices already cleared in the U.S. and Europe.
The medtech giant has set its sights on Intersect ENT, which has developed two types of steroid-eluting implants to treat cases of chronic rhinosinusitis, where symptoms like facial pain, pressure and nasal drainage or obstruction last for more than 12 weeks at a time, often requiring years of costly surgeries and other treatments.
Both companies’ boards of directors have approved the buyout, which will see Medtronic putting up $28.25 in cash for each of Intersect’s outstanding shares, pricing the transaction at about $1.1 billion.
That price represents a boost over the former Fierce 15 honoree’s shares, which closed at $24.52 on Aug. 5, the last full day of trading before the acquisition was announced, and haven’t broken $25 since February of this year.
The transaction is expected to be finalized before the close of Medtronic’s 2022 fiscal year ending April 30. Medtronic forecast that the addition of Intersect’s assets will have a net zero effect on its earnings for the first year after the deal closes, but will ultimately serve as a boon to its bottom line.
Those assets will join Medtronic’s existing ENT portfolio—which includes radiofrequency ablation devices, sinus irrigation systems, sleep disorder breathing products and more—to provide a treatment option for patients with chronic rhinosinusitis, which, according to the company, affects about 1 in 8 U.S. adults.
“Combining this innovative technology with our established global presence and sales infrastructure will allow us to broaden our capabilities while expanding access to these valuable therapies,” said Vince Racano, president of Medtronic’s ENT business.
Intersect’s Propel family of self-expanding implants are inserted after sinus surgery to hold open nasal passageways. The implants deliver an anti-inflammatory steroid directly to the sinuses to prevent further sinusitis symptoms and, over the course of about 30 to 45 days, are absorbed into the body as the sinus cavity heals.
Its Sinuva implant, meanwhile, is inserted to treat nasal polyps that continue to develop on the ethmoid sinus even after surgery. It also elutes an anti-inflammatory medicine to shrink the polyps, and is removed after 90 days.
All of Intersect’s devices have been cleared in the U.S., and three of the four Propel implants have also received CE mark clearance in Europe.
News of the acquisition came alongside Intersect’s second-quarter earnings report. During the three-month period that ended June 30, the company raked in $27.3 million in revenues, a whopping 180% higher than the $9.8 million earned in the same period in 2020 during the first waves of the COVID-19 pandemic.
by Andrea Park
Source: fiercebiotech.com
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