Orthopedic Device Companies Are all the Rage in 2019
Stryker Corporation’s (NYSE: SYK) recently announced acquisition of OrthoSpace, Ltd., an Israeli based orthopedic company, for $110 million (with another $110 million in milestones), makes it tough to ignore 2019’s biggest trend in the medical device sector. Orthopedic companies, so far, have taken up nearly 40% of the medical device transactions this year. In the deal, Stryker gains OrthoSpace’s InSpace platform, a biodegradable sub-acromial spacer designed to realign the natural biomechanics of the shoulder. It expects the InSpace product will bolster its sports medicine portfolio in particular. The product has been used with 20,000 patients across 30 countries.... Read More »
After a Drought, Medical Device Deals Are on the Rise
The medical device market is making a comeback in 2018, after several years of steady but uninspiring performance. Through the end of October, 103 transactions have been announced. That’s still below last year’s total, but there are two months to go in the year. Deal volume in the third quarter reached 41 transactions, up 32% compared with the previous quarter and up 78% over the year-ago period. This quarter’s deals account for 34% of the 122 deals announced in the previous 12 months. Annual deal volume hit a peak of 194 transactions in 2007, and stayed well above 165 deals per year through 2011 (175 transactions). In 2012, mergers and acquisitions topped out at 145... Read More »
Stryker Strengthens Its Spinal Division with K2M Deal
Stryker Corporation (NYSE: SYK) announced its third deal of the year on August 30, acquiring K2M Group Holdings (NASDAQ: KTWO), based in Leesburg, Virginia. Stryker will pay $27.50 per share in an all-cash transaction. The purchase price of approximately $1.4 billion represents a 27% premium over K2M’s average closing price in the 90 trading days ended August 29, 2018. K2M shares rose nearly 26% on news of the deal, opening at around $27.40 per share on August 30, 2018. Stryker’s shares were down nearly 1%, to approximately $170. K2M makes complex and minimally invasive spine “solutions,” which are implants, disposables, and instruments primarily to hospitals for... Read More »Stryker Corp. Is Back in Action
Last year we predicted that, after a busy 2016, Stryker Corporation (NYSE: SYK), the Michigan-based medical device giant, would have a quiet 2017 as it integrated its new product lines. Little surprise then, that more than six months into 2017, the company just announced its first deal of the year. On June 19, 2017, Stryker bought NOVADAQ Technologies Inc. (NASDAQ: NVDQ) for $11.75 per share, or an equity value of approximately $701 million. NOVADAQ develops, manufactures and markets fluorescence imaging products for use by surgeons in the operating room and other clinical settings in the United States and internationally. The acquisition aligns with Stryker’s focus on enhancing... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
