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Covidien Set to Compete in Vascular Business

Covidien, following the acquisition of Vnus Medical Technologies and Bacchus Vascular, is establishing a global business unit focused on vascular surgery.

Covidien Ltd. clearly sees enormous opportunities in the vascular business. If that wasn’t made clear enough when it agreed to pay $440 million—a princely sum for the health care giant—to acquire VNUS Medical Technologies Inc. and its devices to treat venous reflux disease, then consider that in March, Covidien paid considerably less for the smaller, but promising Bacchus Vascular Inc., a privately held and venture-backed company selling a system to treat deep vein thrombosis. [See Deal]

Need a clincher? Covidien will house both acquisitions in a new global business unit that will focus exclusively on the...

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