Becker's Spine Review

18 DEVICES & IMPLANTS Acquisitions, leadership changes & more: 6 big moves from Medtronic By Alan Condon M edtronic has made several big moves this year, including leadership changes, acquisi- tions and robotic investment. Six big moves from Medtronic: 1. In July, the company entered into an agreement to acquire Medicrea, a spine device company that in- cludes artificial intelligence, predictive modeling and patient-specific implant offerings. e acquisition is expected to boost Medtronic's presence in the en- abling technologies and spine markets. e transac- tion is set to close by the end of 2020. 2. Medtronic and Titan Medical entered into a licens- ing and development agreement for robotic-assisted surgery technologies in June. e company will pay Titan Medical up to $31 million in a series of payments to license select technologies. In a separate agreement, Medtronic paid $10 million to Titan to license certain robotic assisted surgical technologies. 3. Omar Ishrak retired as Medtronic CEO in April and transitioned to executive chairman, aer a nine-year stint as head of the medical device company. Geoff Martha, who previously served as senior vice presi- dent of strategy and business development, assumed the role of CEO. 4. In March, Medtronic withdrew its Infuse Bone Gra/LT-Cage Lumbar Tapered Fusion device from the Australian market. e decision came aer a whis- tleblower revealed that the device was being widely used in unapproved ways without the cage designed to contain it. 5. Fourth-quarter revenue at Medtronic dropped 26 percent during the pandemic, hitting $6 billion. e company's restorative therapy group, which includes spine, pain and brain divisions, reported a 5.6 percent drop in fiscal year 2020 revenue to $7.72 billion. 6. In January, Medtronic acquired Stimgenics, devel- oper of the Differential Target Multiplexed spinal cord stimulation therapy. e DTM spinal cord stimulation therapy is a programming option used to treat patients with chronic pain and is administered through the Medtronic Intellis system. n Medtronic to buy Medicrea for 22% above share price: 6 details By Laura Dyrda M edtronic entered into an agreement to acquire Medicrea, a spine device company that includes artificial intelligence, predictive modeling and patient-specific implant offerings in July. Six things to know: 1. The two companies signed a tender offer agreement for Medtronic to acquire Medicrea's outstanding shares in a friendly voluntary all- cash tender offer for around $8 per share. 2. Both companies' boards of directors approved the transaction. 3. The offer of $8.01 per share is 22 percent more than the closing price of Medicrea shares on July 14 and 33 percent over the one- month volume weighted average price of Medicrea shares. The offer is 56 percent of the three-month volume-weighted average price of Medicrea shares. 4. Medtronic aims to grow its presence in the enabling technologies and spine markets. The company already has a portfolio of spinal implants, robotic and navigation technology as well as 3D imaging solutions. Medicrea's data analytics, artificial intelligence and person- alized implants will integrate with Medtronic's procedural solutions. 5. The transaction is expected to close by the end of 2020 and be immaterial to Medtronic's adjusted earnings per share for the first two fiscal years after the acquisition. 6. BofA Securities and Societe Generale are the financial advisers for Medtronic, and DLA Piper is the company's legal adviser. Medicrea's act- ing financial adviser is Cowen, and its legal adviser is Baker McKenzie. n Medtronic proposes takeover of medical devicemaker: 3 things to know By Angie Stewart Medtronic offered to acquire medical device company Intersect ENT, insiders told Bloomberg. Three things to know: 1. While Medtronic's plans could change, Intersect's board of direc- tors is reportedly reviewing the offer. The company makes drug-deliv- ery tools for chronic sinusitis treatment. 2. As one of many smaller devicemakers hurt by COVID-19-related elective surgery cancellations and resulting low demand for medical devices and supplies, Intersect reduced its workforce by 25 percent and furloughed an additional 5 percent of employees in April. 3. Medtronic and Intersect both declined to comment to Bloomberg, and the outlet's sources asked to remain anonymous due to the pro- posal's private nature. n

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