Boston Scientific made news in recent days when it said it would buy Bayer AG’s Interventional Division for $415 million, but it was hardly the largest medical device acquisition announced so far in 2014.
In fact, there were at least five that were more than double in size.
Here are eight of the largest acquisition deals so far this year, amounting to more than $34 billion:
1. Thermo Fisher's Genomics Play
Price: $13.6 Billion
Thermo Fisher Scientific last month completed its $13.6 billion acquisition of Life Technologies Corp., a move that will provide lab products leader Thermo Fisher with access to the DNA sequencing market.
“Our combined offering provides cutting-edge technologies, such as genomics and proteomics, to accelerate life sciences research and improve human health," Thermo Fisher Scientific CEO Marc N. Casper said in a news release.
2. Zimmer Holdings ‘Shakes Warsaw’ with Biomet Deal
Price: $13.35 Billion
The Wall Street Journal in April ran the headline, “The Deal That Shook Warsaw, Ind.,” when Zimmer Holdings announced its plans for the $13.35 billion acquisition of Biomet, the other big ortho device company headquartered in the Indiana city.
The acquisition—expected to close early next year pending customary closing conditions—is expected to solidify Zimmer's position as the second-largest orthopedic company in the world.
Zimmer says it expects to realize cost synergies of $270 million annually by the third year after closing, but the operative word in the deal has been integration, not restructuring.
3. J&J Sells Blood Testing Equipment Business to Carlyle Group
Price: $4 Billion
Johnson & Johnson in late March announced that had accepted a binding $4 billion offer from The Carlyle Group to buy its Ortho-Clinical Diagnostics business, which provides blood-testing equipment and chemicals.
One would think a blood testing equipment business would be a gold mine. Getting one’s blood drawn is pretty common, after all.
But it has not been so for J&J.
The company’s diagnostics business brought in $1.89 billion in revenue in 2013, a nearly 9 percent decline from 2012.
J&J is not alone in this situation. Even with a slight uptick related to the U.S. Affordable Care Act bringing in new patients, the $75 billion lab testing industry will continue to slow down through 2015, according to G2 Intelligence research recounted by American Public Media’s Marketplace.
4. Smith and Nephew Buys ArthroCare
Price: $1.7 Billion
Smith & Nephew announced in February that it had executed an agreement to buy sports medicine company ArthroCare Corp. for $1.7 billion.
The news came only weeks after ArthroCare agreed to pay $30 million to settle securities fraud-related charges with the U.S. Department of Justice.
Still, Smith & Nephew CEO Olivier Bohuon said: “This is a compelling opportunity to add ArthroCare’s technology and highly complementary products to further strengthen our sports medicine business. Together, we will be able to generate significant additional revenue from the more comprehensive portfolio, combined sales force and Smith & Nephew’s global footprint.”
5. GE Acquires Thermo Fisher Life Sciences Technology
Price: $1.06 Billion
Cell culture and gene modulation technology, as well as magnetic beads used protein analysis and medical diagnostics, are included in GE’s $1.06 billion acquisition of life science business lines from Thermo Fisher Scientific.
GE announced in January that the product offering additions would allow GE Healthcare to develop “end-to-end” technologies for cell biology research, cell therapy, and the manufacture of innovative medicines and vaccines.
Buying Thermo Fisher’s Sera-Mag magnetic beads product line enables GE to extend its existing technologies in protein analysis and medical diagnostics. The Sera-Mag beads have a high surface area per unit mass and slow settling rate with good lot-to-lot reproducibility.
6. Boston Scientific Buys Interventional Division of Bayer AG
Price: $415 Million
This $415 deal was just announced Thursday, and is expected to close in the second half of 2014, subject to customary closing conditions. Boston Scientific said buying Bayer AG’s Interventional Division will help it meet its goal of providing a comprehensive portfolio of products and services to treat peripheral vascular disease—which affects more than 27 million people worldwide.
Bayer Interventional had about $120 million in sales in 2013, and purchasing it gives Boston Scientific more access to what it described as attractive segments in the peripheral space, including in the atherectomy and thrombectomy categories.
"These technologies help physicians save both limbs and lives,” Boston Scientific CEO Mike Mahoney said in a news release.
|Refresh your medical device industry knowledge at MD&M East, June 9–12, 2014 in New York City.|
7. Cardinal’s AccessClosure Takeover
Price: $320 Million
Dublin, OH–based Cardinal Health Inc. recently completed its acquisition of privately-held AccessClosure Inc. (Santa Clara, CA), giving it a foothold in the interventional cardiology space. The all-cash $320 million deal, originally announced on April 2, will add AccessClosure's extravascular closure devices and other products to Cardinal's portfolio of solutions.
AccessClosure's Mynx family of patient-friendly vascular closure devices helps physicians seal the femoral artery using a unique, secure sealant, which dissolves within 30 days and leaves behind nothing but a healed artery. According to the company, Mynx allows patients to safely ambulate more quickly, enabling them to return home sooner.
At the April announcement, Don Casey, CEO of Cardinal Health's Medical segment, said, “We are excited about this opportunity because it provides a scalable platform – with an outstanding product, strong customer base, cost-effective service model, and seasoned management team. Our goal is to become the partner of choice for solutions that improve patient care while reducing the cost and complexity of procedures for hospital systems.”
8. Roche Buying Molecular Diagnostics Outfit IQuum
Price: $275 Million (And Maybe More)
Roche last month announced plans to buy molecular diagnostics outfit IQuum (Marlborough, MA) for $275 million. The firm could pay another $175 million, if the unit meets ‘‘product-related milestones.’’
IQuum is an innovator in what it terms “lab-in-a-tube” technology, which uses a flexible tube to hold assay reagents, which are compartmentalized with peelable seals.
Before the IQuum acquisition, Roche already had a large presence in the fast-growing molecular diagnostics business. IQuum’s technology will be merged into Roche’s existing business.
- Conformal Coatings for Tomorrow’s Medical Technologies - Webcast
- ISO80369 Standards Bring Changes to Medical Device Companies - Webcast
- Automation in Machining - Webcast
- How to Develop a Risk Based Biological Safety Evaluation Per New US FDA Guidance - Webcast
- 3 Tips for Successfully Launching an Outsourced Medical Device - Webcast
- When Do I Really Need to Perform an Ethylene Oxide Requalification? - Webcast