Medtronic to Expand Minimally Invasive Therapy Portfolio with Acquisition of Gynecology Business from Smith & Nephew
May 18 2016 - 8:00AM
DUBLIN - May 18, 2016 -
Medtronic plc (NYSE: MDT) today announced it has signed a
definitive agreement to acquire Smith & Nephew's (NYSE: SNN;
LSE: SN) gynecology (GYN) business for approximately $350 million.
This agreement reinforces Medtronic's dedication to expanding the
use of less invasive treatments and demonstrates a commitment to
improving options for women with abnormal uterine bleeding (AUB).
The addition of the GYN portfolio will expand and strengthen
Medtronic's minimally invasive surgical offerings and will further
complement its existing global GYN business. The acquisition is
expected to close this summer.
Smith & Nephew's key GYN solution is the
TRUCLEAR System, which is a medical technology platform used to
remove abnormal uterine tissue such as polyps and fibroids. The
TRUCLEAR System, currently available throughout the U.S. and parts
of Europe, is a less invasive treatment option to surgical
procedures such as a hysterectomy. The TRUCLEAR procedure is a
minimally invasive surgical option that can be performed as an
outpatient procedure. For more than 10 years, Smith & Nephew
has developed medical devices in the GYN space.
"We believe gynecology is one of the most
underserved specialty procedure areas. Smith & Nephew has
developed a rapidly growing business that expands minimally
invasive treatment options for gynecology patients," said Chris
Barry, senior vice president and president of the Surgical
Innovations business, Minimally Invasive Therapies Group at
Medtronic. "This acquisition expands our existing GYN portfolio and
we believe creates opportunities to further explore and develop
global therapies and solutions that improve GYN surgery."
Currently, 100 million women worldwide suffer from
AUB and less than 15 percent receive treatment annually1. Treatment
options for AUB include medical therapy, dilation and curettage,
polypectomy, global endometrial ablation, hysterectomy, myomectomy
and electrical hysteroscopic tissue resection.
This acquisition supports Medtronic's therapy
innovation and economic value strategies. Partnering with
stakeholders in healthcare, Medtronic is positioned to offer
products and services that deliver clinical and economic value to
the healthcare system. Medtronic is focused on leading the shift to
value based healthcare, which rewards those who can deliver quality
healthcare to more people at the most affordable cost.
This transaction is expected to meet Medtronic's
long-term financial metrics for acquisitions. Medtronic expects the
net impact from the transaction to be earnings neutral in fiscal
year 2017 and accretive to earnings thereafter. Medtronic will
report the acquired GYN business as part of its Surgical Solutions
division within the Minimally Invasive Technologies
Group.
About Medtronic
Medtronic plc (www.medtronic.com), headquartered in Dublin,
Ireland, is among the world's largest medical technology, services
and solutions companies - alleviating pain, restoring health and
extending life for millions of people around the world. Medtronic
employs more than 85,000 people worldwide, serving physicians,
hospitals and patients in approximately 160 countries. The company
is focused on collaborating with stakeholders around the world to
take healthcare Further, Together.
This press release
contains forward-looking statements that involve risks and
uncertainties. Such forward-looking statements include Medtronic's
intended business strategy and expectations regarding benefits to
Medtronic's operations as a result of the closing of the Smith
& Nephew GYN business acquisition. The statements in this
release are based upon current expectations and are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements, including risks related to the integration of Smith
& Nephew's GYN operations into Medtronic's, delays or obstacles
in realizing the anticipated future benefits (including cost
savings and other synergies) resulting from the acquisition of
Smith & Nephew GYN business, difficulties and delays inherent
in the development, manufacturing, marketing and sale of medical
products and services, government regulation, general economic
conditions and other risks and uncertainties set forth in
Medtronic's periodic reports on file with the Securities and
Exchange Commission. Actual results may differ materially from
anticipated results. Medtronic does not undertake to update its
forward-looking statements.
-end-
1 Medtronic
internal data on file.
Contacts:
John Jordan
Public Relations
+1-508-452-4891
Ryan Weispfenning
Investor Relations
+1-763-505-4626
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Medtronic plc via Globenewswire
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