Covidien Buys Given To Build GI Business Base In Biggest Israeli Medtech Deal

Three years ago, Covidien signaled its intention to build a gastrointestinal device business with its acquisition of Barrx Medical and its esophageal ablation technology for Barrett’s esophagus. Since then, the industry has been waiting for Covidien to follow through on its strategy to expand its presence in the $3 billion GI market, and that next step came with the company’s recent $860 million acquisition of publicly traded Given Imaging Ltd.

Three years ago, Medtronic Minimally Invasive Therapies signaled its intention to build a gastrointestinal (GI) device business with its acquisition of Barrx Medical and its esophageal ablation technology for Barrett’s esophagus for $325 million up front (and now more than $409 million with milestones, around 10 times revenue). [See Deal] (See Also see "Covidien Still Hungry For GI After Barrx Buy" - In Vivo, 27 December, 2011..) Since then, the industry has been waiting for Covidien to follow through on its strategy to expand its presence in the $3 billion GI market, and that next step came with the company’s recent $860 million acquisition of publicly traded Given Imaging Ltd.[See Deal] Given Imaging pioneered the capsule endoscopy diagnostic market with its innovative camera-in-a-pill, the PillCam − a vitamin-sized, disposable camera system that is swallowed to wirelessly capture endoscopic images of the GI system. (See Also see "Given Imaging: A Capsule View of GI Diagnostics' Future" - In Vivo, 1 May, 2002..) In acquiring Given, Covidien continued to tap into Israel as a source of medtech innovation, following its previous acquisitions of Israeli-based superDimension Ltd. and Oridion Systems. [See Deal][See Deal] Indeed, for all of the device start-ups that have emerged from Israel, that country’s medtech sector has been criticized for not producing a blockbuster deal. This deal answers those critics, amounting to the largest Israeli medtech acquisition.

The $30 per share that Covidien paid for Given represents a 27% premium over its recent stock price and the...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Global Vision

UK Bets On Regulatory Innovation As Competitive Advantage In Synthetic Biology

 
• By 

The UK government has prioritized synthetic biology and created a "concierge service" for biotechs just as the US cuts science funding.

Chinese Firms Build Obesity Clinical Pipeline But Face Wider Hurdles

 
• By 

Despite the ability to initiate clinical trials quickly and having strong manufacturing capacity, Chinese companies are facing multiple challenges in the obesity space.

Unpacking The Impact Of Trump’s Tariffs On Drug Pricing And Production

 
• By 

Big pharma plans to invest billions of dollars in US manufacturing to avoid tariffs proposed by the Trump Administration. However, the implementation of these plans may be delayed due to regulatory complexities and rising costs from tariffs, potentially impacting drug prices for consumers.

Barcelona’s S2 Xpeed Accelerates Hardware-Based Medtech Start-Ups From Prototype To Market

 
• By 

S2 Xpeed is driving the rapid growth of medtech and hardware start-ups in Europe. Operating under a "sweat equity" model, the program helps early-stage companies move from prototype to manufacturing readiness in exchange for equity.

More from In Vivo

Crisis Or Opportunity? US MFN Policy Could Test Japan’s Appetite For Reforms

 
• By 

While the adoption of most favored nation drug pricing in the US stands to affect Japanese biopharma firms now heavily reliant on this market, it might also present an opportunity for pricing and policy reforms at home.

Rising Leaders 2025: Ovid’s Meg Alexander On Neurology’s Next Frontier

 
• By 

Ovid Therapeutics' president and COO Meg Alexander is leading the company’s strategic pivot toward innovative neurological treatments, potentially creating a new class of medicines for rare neurological disorders.

The Goldilocks Isotope: Perspective Therapeutics’ ‘Just Right’ Alpha Radiotherapeutic

 
• By 

Thijs Spoor's bet on lead-212 is paying off as Perspective Therapeutics advances three clinical programs with promising early efficacy signals and a comprehensive manufacturing strategy.