Although the US medical device industry saw a decrease of ~30% in deal activity during May 2022, (as compared to the prior 12-month average), there was still much activity to report. According to the Globaldata Deals Database (i), in May 2022, 76 medical device industry deals worth $866.4m were declared in the US, as compared to the 12-month average of 112 deals.
What is the driver?
While stable, medical device companies know they need to grow. Portfolios need to be scrubbed to sell off expendable, lower-growth assets that don’t meet the core strategy. This will prepare them for investment in the next surge of growth in our medtech sector.
Here are my top three favorites, because the acquisition neatly fits the core strategy of the company.
ANNOUNCEMENT #1
Boston Scientific will acquire majority stake in M.I. Tech
RATIONALE: M.I. Tech is a Korea-based manufacturer and distributor of medical devices for endoscopic and urologic procedures. M.I. Tech has been in business since 1991 and exports to > 60 countries.
STRATEGY: This is an attractive cross-border distribution deal for Boston Scientific as well as a technology acquisition deal for the urology and endoscopic business units.
ANNOUNCEMENT #2
Conmed completes In2Bones acquisition
RATIONALE: In2Bones is a US based global developer, manufacturer and distributor of medical devices for the treatment of the upper extremities (hand, wrist, elbow) and lower (foot and ankle).
STRATEGY: This is a good fit for Conmed’s orthopedics surgery business unit.
ANNOUNCEMENT #3
Integer Holdings Corporation Acquires Aran Biomedical (ii)
RATIONALE: Integer is a medical device outsource manufacturer for the cardiac, neuromodulation, vascular and portable medical markets. Aran Biomedical provides proprietary medical textiles, high precision biomaterial coverings and coatings as well as advanced metal and polymer braiding for implantable medical devices.
STRATEGY: This acquisition increases Integer’s competencies in providing complete solutions for complex delivery and therapeutic devices in growing cardiovascular markets such as neurovascular, structural heart, peripheral vascular, and endovascular and general surgery.
Footnotes
i. https://www.globaldata.com/marketplace/cross-industry/globaldata-deals
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