It’s been a long time in some ways, but MedtronicAcquires medtech company for $1.1 billion Intersecting Otolaryngology Now complete, Dublin-based equipment manufacturer announced on friday.
Earlier this week, the FTC announced that Medtronic Will have to spin off the Intersect subsidiary— Sold surgical navigation company Fiagon to biotech company Homeostatis — for acquisition approval. Headquartered in Menlo Park, California, Intersect is focused on advancing ENT care. But the FTC expressed concern that Medtronic’s acquisition of the company could lead to higher prices and less innovation; it required Medtronic to unload Fiagon no later than 10 days after acquiring Intersect.
“Further, Medtronic and Intersect must obtain FTC pre-approval within 10 years before they can purchase ENT navigation systems and balloon sinus dilation assets in response to any future attempts to consolidate these important markets,” the FTC ordered.
After agreeing to the agency’s terms, Medtronic received the license to move forward after more than a decade of deals.
Medtronic first invested in Intersect in 2010. Since then, the company has had a close relationship with Intersect, and investors have long speculated that Medtronic might buy the company. At last, Last August, Medtronic announced It is moving forward with the acquisition, which was completed on Friday.
One thing that makes Intersect a particularly attractive target for device makers is its steroid-coated stent, according to Medtronic. Sinus implants are used to treat chronic sinusitis, a common chronic condition in which the spaces within the nose and sinuses become inflamed, causing symptoms ranging from lingering colds to headaches.
Intersect’s Propel Sinus Implant is used in conjunction with sinus surgery, while its Sinuva Implant is a non-surgical treatment for nasal polyps, non-cancerous growths in the nasal cavity and sinuses. Intersect is the first company to receive FDA approval for such a device.
Medtronic said the acquisition will expand its range of devices and improve care for patients with conditions such as chronic sinusitis or CRS.
“By combining Intersect ENT’s pioneering localized drug delivery product with Medtronic’s leading navigation and powered instrumentation, we can now provide physicians with the right tools for many unique patient needs,” said Vince Laca, president of Medtronic’s ENT business No said in a statement. “This acquisition expands our product portfolio and we can now provide a more comprehensive continuum of care for CRS patients, while supporting Medtronic’s ambition to become a global leader in healthcare technology.”
Shares of the equipment maker rose more than $1.60 to more than $102 a share in trading on the New York Stock Exchange on Friday morning after announcing the acquisition.
Photo: maxsattana, Getty Images
