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MedTech industry biggest M&A of 2021

Across 2021, MedTech has seen a wide range of mergers and acquisitions covering several areas of devices, pharmaceuticals and more.
Some have gone off without a hitch, while others came under serious scrutiny as mouthwatering financial figures were revealed and major technologies were acquired.

Here are the 10 biggest mergers and acquisitions in MedTech in 2021:

1. Thermo Fisher — PPD — $17.4B
The two companies entered into a definitive agreement for Thermo Fisher to buy PPD at a price of $47.50 per share, totaling $17.4 billion, plus the assumption of approximately $3.5 billion of net debt. That represented a premium of approximately 24% to the unaffected closing price of PPD’s common stock as of Tuesday, April 13, 2021, the last day of trading before the announced merger.

Wilmington, North Carolina-based PPD provides clinical research and laboratory services to enable customers to accelerate innovation and increase drug development productivity. The company has more than 26,000 employees operating across 50 countries. It reported revenue of $4.7 billion in 2020 and in 2021 became a part of Thermo Fisher’s laboratory products and services business segment.

Waltham, Massachusetts-based Thermo Fisher said at the time of the merger that it expected the transaction to be immediately and significantly accretive to its adjusted EPS, adding $1.40 in the first 12 months after close.

“The acquisition of PPD is a natural extension for Thermo Fisher and will enable us to provide these customers with important clinical research services and partner with them in new and exciting ways as they move a scientific idea to an approved medicine quickly, reliably and cost-effectively,” Thermo Fisher President and CEO Marc Casper said at the time of the announcement. “Longer term, we plan to continue to invest in and connect the capabilities across the combined company to further help our customers accelerate innovation and drive productivity while driving further value for our shareholders.”

2. Siemens Healthineers — Varian Medical Systems — $16.4B
In August, the companies announced that Siemens would acquire Varian in a $16.4 billion deal as the companies sought to create “the most comprehensive” portfolio of cancer care offerings in the industry. Varian shareholders approved the deal in October and a number of high-level personnel moves followed, including the planned retirement of Varian CEO Dow Wilson and the resignation of Varian CFO J. Michael Bruff.

Siemens’ acquisition of Varian seeks to build upon a strategic partnership called EnVision, which aims to create a digital, diagnostic and therapeutic ecosystem that includes treatment management. The companies plan to utilize AI-assisted analytics to advance their data-driven precision care while redefining cancer diagnosis, care delivery and post-treatment survivorship.

“With the completion of this transaction, we are now best-positioned to take two leaps together: a leap in cancer care and a leap in our impact on healthcare overall,” Siemens Helathineers CEO Dr. Bernd Montag said. “Together, we are establishing a strong and trusted partner capable of supporting customers and patients along the entire cancer care continuum as well as through all major clinical pathways.”

3. Baxter — Hillrom — $12.4B
Baxter agreed to acquire Hillrom at a price of $156 per share in cash for a total equity value of approximately $10.5 billion, with the purchase reaching a total enterprise value of approximately $12.4 billion, including the assumption of debt. That purchase price reflects a 26% premium to Hillrom’s closing stock price on July 27, 2021, the last trading day prior to media reports speculating on the potential transaction.

The acquisition was expected to add to Baxter’s product portfolio and innovation pipeline in a way that allows it to offer a wider range of medical products and services to patients and clinicians across the care continuum, the company said. A major part of the deal involves accelerating the companies’ expansion into digital and connected care solutions to enable patients to access hospital-level care at home or in other care settings.

“Baxter and Hillrom share a common vision for transforming healthcare to better serve all patients and providers,” Baxter Chairman, President and CEO José (Joe) E. Almeida said. “Patients increasingly want to receive their care at home or nearby, while hospitals and other care providers are increasingly using digital health technologies to expand access, improve quality and lower costs.”

4. Danaher — Aldevron — $9.6B
Danaher agreed to acquire Aldevron, a manufacturer of high-quality plasmid DNA, mRNA and proteins, for approximately $9.6 billion.

Fargo, North Dakota-based Aldevron, which employs approximately 600 people, develops the DNA, mRNA and proteins to serve biotechnology and pharmaceutical customers across research, clinical and commercial applications. It will continue to operate as a standalone company and brand within Danaher’s life sciences business segment.

“We are thrilled to have Aldevron join Danaher’s life sciences segment. For nearly 25 years, Aldevron has made tremendous contributions to the advancement of cell, gene and other novel therapies and vaccines,” Danaher President and CEO Rainer Blair said. This acquisition will expand our capabilities into the important field of genomic medicine and help us support our customers and their critical mission to bring more life-saving therapies and vaccines to market faster.”

5. Illumina — Grail — $8B
In August, Illumina announced that it completed its long-awaited and much-scrutinized acquisition of cancer detection company Grail, but, due to that scrutiny, it will hold Grail as a separate company as the European Commission conducts an ongoing regulatory review.

More than one year ago, the San Diego-based company agreed to acquire Grail, a startup that spun out from Illumina nearly five years ago, for cash and stock consideration of $8 billion. In the spring, the companies had agreed to postpone the merger while the U.S. Federal Trade Commission (FTC) challenged the deal. A U.S. judge ruled in favor of an FTC petition to drop its case against the merger without prejudice, a move that allowed the EU to continue investigating the merger.

Illumina will present a jurisdictional challenge in the General Court of the European Union later this year. The company said that while it holds Grail separate while proceedings are ongoing, it can abide by whatever final decision is reached. Should the deal go through, the combined company aims to provide top-of-the-line multi-cancer early detection offerings.

“Just as we are now able to screen for early-stage diabetes and high cholesterol, we will soon be able to conduct multi-cancer early detection with a simple blood test in your doctor’s office,” Illumina CEO Francis deSouza said. “Since early detection of cancer saves lives, this new genomic test will be nothing short of transformational for human health and the economics of healthcare.”

6. PerkinElmer — BioLegend — $5.25B
With the largest acquisition in the company’s history, PerkinElmer (NYSE:PKI) paid $5.25 billion to expand its life science franchise into high-growth areas including cytometry, proteogenomics, multiplex assays, recombinant proteins, magnetic cell separation and bioprocessing.

San Diego-based BioLegend has more than 700 employees based primarily in the U.S. and estimated 2022 revenues of $380 million. Once a part of PerkinElmer, BioLegend will expand the company’s life science franchise into new segments, with its San Diego campus set to become PerkinElmer’s global center of excellence for research reagent content development for the combined company. PerkinElmer expects BioLegend to contribute an incremental $380 million in revenue and adjusted EPS of 30¢ per share in fiscal 2022.

“BioLegend’s stellar leaders, teams and technologies will play a critical role in our combined companies’ ability to provide new, innovative solutions to scientists — helping drive novel therapeutic discovery and development,” PerkinElmer President and CEO Prahlad Singh said in a news release. “We also look forward to BioLegend significantly enhancing our leading reagents portfolio as we partner together to innovate and advance science for our customers.”

7. Steris — Cantel Medical — $4.6B
In one of the first major medtech acquisitions of 2021, Steris announced in January that it was set to buy Cantel Medical.

The acquisition combines Steris’ offerings of sterilizers and washers with Cantel’s devices that center around endoscope disinfection, water purification and filtration for dialysis along with healthcare disposables. The companies said the deal adds a full suite of high-level disinfection disposables, capital equipment and services and additional single-use accessories to Steris’s endoscopy offerings. Cantel’s dental business will also extend Steris into a new segment of potential customers.

“We have long appreciated Cantel, which is a natural complement and extension to Steris’s product and service offerings, global reach and customers,” Steris CEO Walt Rosebrough said. “Our companies share a similar focus on infection prevention across a range of healthcare customers. Combined, we will offer a broader set of customers a more diversified selection of infection prevention and procedural products and services.”

8. Philips — BioTelemetry — $2.8B
In another early M&A move in 2021, Royal Philips in February successfully completed its acquisition of all outstanding shares of BioTelemetry, sealing a deal that was initially agreed upon in December 2020.

BioTelemetry, a company with approximately 1,900 employees, develops diagnostics and monitors for heart rhythm disorders, including wearable heart monitors that detect and transmit abnormal heart rhythms wirelessly, along with AI-based data analytics and services. The company joined Philips’ connected care business segment as a wholly-owned subsidiary of the Amsterdam-based medtech company. Philips expects to supplement its in-hospital patient monitoring business with BioTelemetry’s cardiac diagnostics and monitoring technologies for outside the hospital.

“The acquisition of BioTelemetry fits perfectly with our strategy to be a leading provider of patient care management solutions for the hospital and the home,” Philips CEO Frans van Houten said in the initial announcement. “BioTelemetry’s leadership in the large and fast-growing ambulatory cardiac diagnostics and monitoring market complements our leading position in the hospital. Leveraging our collective expertise, we will be in an optimal position to improve patient care across care settings for multiple diseases and medical conditions.”

9. Sanofi — Kadmon — $1.9B
In a big move in the pharmaceutical space, Sanofi (NYSE:SNY) in September entered into a definitive merger with therapeutic developer Kadmon. Shareholders of Kadmon common stock were set to receive $9.50 per share in cash to total $1.9 billion on a fully diluted basis. The boards of directors for both companies unanimously approved the transaction and the companies expect it to be modestly dilutive to Sanofi’s earnings per share in 2022.

The acquisition bolsters Sanofi’s transplant portfolio with Rezurock (belumosudil), an FDA-approved, first-in-class treatment for chronic graft-versus-host disease (cGVHD) for patients over 12 years old who have failed at least two prior lines of systemic therapy. Rezurock launched in the U.S. in August as the first and only approved small molecule therapy that inhibits the Rho-associated coiled-coil kinase 2 (ROCK2) signaling pathway.

“We are transforming and simplifying our general medicines business and have shifted our focus on differentiated core assets in key markets,” Sanofi EVP of General Medicines Olivier Charmeil said. “We are thrilled to add Kadmon’s Rezurock to our well-established transplant portfolio. Our existing scale, expertise, and relationships in transplant create an ideal platform to achieve the full potential of Rezurock, which will address the significant unmet medical needs of patients with chronic graft-versus-host disease around the world.”

10. Amgen — Five Prime Therapeutics — $1.9B
With the largest drug delivery-related acquisition, Amgen bought Five Prime Therapeutics to support its strategy for international expansion and accelerate pipeline programs to complement Amgen’s numerous injectable and oral oncology therapeutics.

The $1.9 billion deal between the two California-based companies adds Five Prime’s pipeline to Amgen’s oncology portfolio, including Five Prime’s lead asset, bemarituzumab.

Bemarituzumab is a first-in-class, Phase 3-ready anti-FGFR2b antibody for advanced gastric or gastroesophageal junction cancer. Trial results for the therapeutic suggest that FGFR2b could be used in treating other epithelial cancers, including lung, breast, ovarian and more.

“Five Prime fits squarely within Amgen’s leading oncology portfolio and includes bemarituzumab, a Phase 3 trial-ready, first-in-class program for gastric cancer, the third leading cause of cancer mortality worldwide,” Amgen Chair and CEO Robert Bradway said. “Working with the dedicated professionals joining us from Five Prime, we plan to quickly move bemarituzumab into a Phase 3 study, bringing it one step closer to helping patients suffering from gastric cancer.”

11. DiaSorin — Luminex — $1.8B
Luminex develops diagnostic testing products, including platforms based on multiplexing technology. The Austin, Texas-based company’s diagnostics include COVID-19 tests, which received FDA emergency use authorization last year.

12. Roche — GenMark Diagnostics — $1.8B
Roche looks to bolster its molecular diagnostics portfolio with GenMark Diagnostics’ syndromic panel testing portfolio. The ePlex system made by GenMark drives efficiency in the laboratory through a streamlined order-to-reporting workflow, enabling rapid diagnoses.

13. Boston Scientific — Baylis Medical — $1.75B
Boston Scientific expanded its electrophysiology and structural heart product portfolios to include the radiofrequency (RF) NRG and VersaCross transseptal platforms from Baylis Medical, as well as a family of guidewires, sheaths and dilators used to support left heart access.

14. GE Healthcare — BK Medical — $1.45B
GE Healthcare made a major imaging play by acquiring BK Medical and its intraoperative imaging and surgical navigation technology for guiding clinicians during minimally invasive and robotic surgeries. The platform also aids in visualizing deep tissue during procedures in neuro and abdominal surgery and in ultrasound urology.

15. Boston Scientific — Preventice Solutions — $1.225B
Another of several big-time M&A plays by Boston Scientific (NYSE:BSX), the company bought Preventice and its mobile health solutions and remote monitoring offerings for patients with cardiac arrhythmias. Among its products are wearables, including the PatientCare platform and BodyGuardian family of monitors.

16. Philip Morris — Vectura — $1.2B
In one of the more controversial moves of 2021, Philip Morris , a cigarette maker, bought Vectura to gain access to the company’s inhaled drug delivery technologies that can help it reach its goal of generating more than 50% of its total net revenue from smoke-free products by 2025.

17. Medtronic — Intersect ENT — $1.1B
By acquiring Intersect ENT, medtech giant Medtronic expanded its portfolio of ear, nose and throat medical devices. Intersect ENT makes the Propel and Sinuva sinus implants that open sinus passageways to deliver an anti-inflammatory steroid to aid in healing.

18. Boston Scientific — Lumenis — $1.1B
In the third and final appearance of Boston Scientific on this list, the company picked up Lumenis and its surgical business, which includes premier energy-based laser systems, fibers and accessories for urology and otolaryngology procedures.

19. Adapt Health — AeroCare — $1.1B
AeroCare develops technology-enabled respiratory and home medical equipment distribution platforms in the U.S., including direct-to-patient equipment and services like CPAP and BiPAP machines, oxygen concentrators, home ventilators and other durable medical equipment products.

20. Dentsply Sirona — Byte — $1.04B
The earliest major acquisition of 2021, Dentsply Sirona’s Jan. 5 announcement confirmed that the buy will utilize Byte’s leadership position in the direct-to-consumer clear aligner market. Medical Design & Outsourcing

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