Ethicon Buys Acclarent: Can This Exit Open Up ENT?

Traditionally, the ENT space has been a bit of a technology backwater in terms of device innovation. The natural conservatism of ENT surgeons combined with a culture in which the various specialty societies reinforce this perspective through their reluctance to embrace new approaches and resistance to revising reimbursement and other regulatory issues have discouraged entrepreneurs and investors from spending much time or money in this space. This has resulted in a lack of start-up activity in this area and a concomitant lack of deal making. Indeed, it has been more than a decade since the last major ENT deal, which was Medtronic PLC's acquisition of Xomed Surgical (now Medtronic Xomed Inc.) for $736 million in 1999. [See Deal]

As a result of that deal, Medtronic became the sole major strategic player in the ENT space, which is another...