USA –Boston Scientific has announced that it agreed with Synergy Innovation to purchase 64% stake in M.I. Tech in a deal worth US$230 million at current exchange rates, subject to closing adjustments.
M.I. Tech is a publicly traded, Korea-based manufacturer and distributor of medical devices for endoscopic and urologic procedures to clear obstructions in the airway and gastrointestinal system
According to a news release, M.I. Tech created the Hanarostent family of conformable, non-vascular, self-expanding metal stents, which Boston Scientific has distributed in Japan since 2015.
Hanarostent technology features a hook-cross nitinol design for providing a natural and flexible fit within a patient’s anatomy, along with flared ends to help keep the device in place.
The companies plan to close the deal sometime in the second half of this year, and Boston Scientific said it isn’t expecting the acquisition to have any material impact on its earnings per share for 2022.
Boston Scientific’s acquisition is one of several this year after the medical device industry’s 2021 spending spree.
The agreement is the first acquisition announced by Boston Scientific this year after a busy 2021 in which it bought five companies, including Baylis Medical Company for US$1.75 billion and Lumenis’ surgical business for US$1.07 billion.
Boston Scientific is no stranger to the Hanarostent, having signed a deal with M.I.Tech in 2015 to distribute the devices in Japan.
But it did not disclose how the acquisition deal might affect M.I.Tech’s existing relationship with Olympus, which has its own exclusive distribution agreement for the Hanarostent technology in the US.
Boston Scientific’s acquisition is one of several this year after the medical device industry’s 2021 spending spree.
Other deals so far in 2022 include Stryker’s US$2.97 billion purchase of Vocera Communications, Becton Dickinson’s announced plan to buy Parata for US$1.53 billion and ResMed’s plan to buy MediFox Dan for approximately US$1 billion.
The pace of activity could change in the second half of the year. The RBC analysts noted that a clutch of companies including Abbott Laboratories, Johnson & Johnson, Medtronic and Stryker are actively seeking takeover targets and “have resources to allocate even as the current market environment is likely to drive some caution,” according to Medtech Dive.
In other news, Boston Scientific has inaugurated its new office in the UAE at Dubai Science Park (DSP), the leading science-focused community part of TECOM Group, to meet the growing needs of patients in the Middle East.
Boston Scientific said the move is aimed at addressing the significant increase in demand for medical devices in the region, which according to Business Market Insights, is expected to reach US$21.8 billion in 2027.
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