J&J Slices Its Medical Device Division
Johnson & Johnson (NYSE: JNJ) announced the restructuring of its medical devices business on January 19, 2016. Its 8K filing noted pre-tax restructuring charges of $2.0 billion to $2.4 billion, expected to be incurred this year, as well as a Q4:15 charge of approximately $600 million. About 4% to 6% of the division’s global workforce will get walking papers over the next two years, resulting in a $500 million charge for severance. On a more upbeat note, JNJ expects to see annualized pre-tax cost savings of $800 million to $1.0 billion. This move comes as the market for medical devices has slowed, particularly in the United States. As one of many cost-cutting measures, U.S.... Read More »Private Equity in Health Care M&A, 2015
It’s been a superlative year for health care M&A overall, and private equity firms have made a significant contribution. With two (busy) weeks left to go in 2015, PE buyers have announced 129 deals, and that’s not including all the portfolio companies that were building their platforms in the various sectors. Below are some preliminary stats we’ve put together on PE activity in 2015. Private equity buyers account for 9% of the present deal volume of 1,395 transactions, which is typical in recent years. Deal value is a less substantial measure of PE activity, because the majority of deals don’t disclose financial terms. As of December 17, $9.1 billion has been... Read More »Medtronic Leads Medical Device M&A in 2015
The Medical Device sector has experienced some ups and down, as M&A goes. Last year, the sector posted 111 transactions and $85.6 billion in spending, which was an 8% and 620% improvement, respectively, over 2013’s performance. This year doesn’t look like a knock-out year for spending, with a sector total of just $36.2 billion as of November 20. Deal volume could still reach last year’s levels, since it stands at 103 deals as of that date. Medtronic plc (NYSE: MDT) has been the busiest acquirer by far, with 10 deals announced. Seven of those disclosed prices, totaling $1.25 billion through November 20. Here’s our list of the top Medical Device deals to date.... Read More »CONMED Boosts Outlook with SurgiQuest Deal
CONMED Corporation (NASDAQ: CNMD), a medtech company known for its minimally invasive medical instruments and systems used in othorpedics and general surgery, announced its acquisition of privately held SurgiQuest, Inc., for $265 million on November 16. Just a few weeks earlier, CONMED CEO Curt Hartman acknowledged that CNMD third quarter earnings were weaker than expected in export markets and general surgery. That may be remedied with SurgiQuest’s AirSeal® System, the first integrated access management technology for use in laparoscopic and robotic procedures. Published clinical data demonstrates that AirSeal leads to shorter procedure times and reduced post-operative pain. CONMED... Read More »Boston Scientific Buys Interventional Radiology Business
The medical device sector just keeps plugging along with its mergers and acquisitions, with four announcements already in November. One was Boston Scientific Corporation (NYSE: BSX), which announced its acquisition of the interventional radiology business of CeloNova Biosciences, a global developer and manufacturer of endovascular and interventional cardiology technologies. The price was $70 million upfront, plus additional payments contingent on regulatory and sales milestones. BSX is taking on CeloNova’s Embozene Tandem Drug-Elutable Microspheres, which can be embedded with drugs used to treat liver cancer, and other oncology products. CeloNova has received an Investigational... Read More »Schedule a demo
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