The Medical Device sector has been humming. Granted, it comprises a huge range of things, from hip and knee joints to cardiovascular devices. Since 2016, 176 deals have been announced, and $102 billion has been committed based on 73 disclosed prices. Among the 176 deals, 14 target companies specialize in cardiovascular devices, 14 specialize in orthopedic and spine devices, 10 specialize in aesthetic devices each, and eight specialize in vascular devices, to name a few.
The most recent deal, on July 10, was of a company that covered a very interesting niche of medical devices. ThermoGenesis Corp., a wholly-owned subsidiary of Cesca Therapeutics Inc., (NASDAQ: KOOL) acquired privately held SynGen Inc., in exchange for 20% of its common stock and a one-time cash payment of $1 million.
SynGen Inc. develops, designs and manufactures cell separation tools and accessories that focus on the recovery of target cells and depletion of contaminating cells. It offers various medical devices, including SynGenX-1000 System, a closed sterile processing system that isolates and harvests stem and progenitor cells from umbilical cord blood.
But when it comes to which subsector attracts the most money, its hard to say, since the five largest MD deals are a testament to the range of areas this sector covers. The largest deal, at $30.6 billion, was Abbott Laboratories’ (NYSE: ABT) acquisition of St. Jude Medical, Inc. (NYSE: STJ). St. Jude specializes in cardiovascular medical devices for cardiac rhythm management and cardiovascular and atrial fibrillation therapy areas.
The second largest deal in this sector is Becton, Dickinson and Company‘s (NYSE: BDX) acquisition of C.R. Bard, Inc. (NYSE: BCR) for $24 million. C.R. Bard specializes in vascular, urology, oncology and surgical specialty products.
Then, for $6.1 billion, Cardinal Health Inc. (NYSE: CAH) bought Medtronic’s (NYSE: MDT) Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses, which sells products such as prefilled syringes, bandages and catheters, featuring brands such as Curity, Kendall, Dover, Argyle and Kangaroo.
Taking fourth place, for $5.9 billion, was an unusual acquirer to find in the medical device space. Canon Inc. (NYSE: CAJ) purchased Toshiba Medical Systems from Japanese electronics manufacturer Toshiba Corp. (OTC: TOSYY). The division makes diagnostic imaging systems such as MRI, X-ray and ultrasound equipment.
Finally, Johnson & Johnson (NYSE: JNJ) purchased Abbott Medical Optics, a wholly owned subsidiary of Abbott Laboratories, for $4.33 billion. Abbott Medical Optics is a global leader in ophthalmic surgery and is known for world-class intraocular lenses used in cataract surgery.
