Medtronic finally bags Intersect ENT

A year after a rumoured bid by Medtronic for Intersect ENT, the deal is finally official. In paying $28.25 per share, or $1.1bn in total, the big medtech is not getting the bargain it might have done in mid-2020, but the target is still likely cheaper than it would have been before Covid-19 hit. Intersect, which makes bioresorbable drug-eluting nasal implants to treat sinusitis, suffered in the pandemic as elective procedures were postponed, but bounced back during its second quarter, when revenues grew 180% to $27m, albeit against a weak comparator period. Still, Medtronic will need to boost these numbers further to justify the money it is paying, and Stifel analysts reckon the group’s marketing muscle could drive double-digit Intersect sales growth. Medtronic is focused on tuck-in deals, which could mean anything up to several billion dollars, its chief executive, Geoff Martha, said during the group’s fourth-quarter earnings call. The Intersect purchase is much bigger than Medtronic’s last buy, Medicrea International, for just €139m ($158m). But even a $1bn acquisition is not huge by this year’s standards in the broader medtech space, as a look at the deals agreed this year shows.

Biggest medtech deals agreed in 2021 so far
Acquirer Target  Deal value ($m) Date announced
Perkinelmer Biolegend 5,250 Jul 2021
Steris Cantel Medical 4,600 Jan 2021
Roche Genmark Diagnostics 1,800 Mar 2021
Diasorin Luminex 1,800 Apr 2021
Boston Scientific Preventice Solutions 1,225 Jan 2021
Medtronic Intersect ENT 1,100 Aug 2021
Boston Scientific Surgical business of Lumenis 1,070 Mar 2021
Dentsply Sirona Byte 1,040 Jan 2021
Tecan Group Paramit, subsidiary of Altaris Capital Partners 1,000 Jun 2021
Hologic Mobidiag 795 Apr 2021
Source: Evaluate Medtech.

Share This Article