Biomet Makes Play for DePuy’s Trauma Biz Biomet Inc. agreed to buy the trauma division of Joh

Biomet Makes Play for DePuy’s Trauma Biz
Biomet Inc. agreed to buy the trauma division of Johnson & Johnson (J&J)-owned DePuy Orthopaedics for $280 million in cash. The move comes after J&J announced its intent to buy Switzerland-based orthopedic device company Synthes almost a year ago. J&J would fold Synthes into DePuy Orthopaedics to create, according to the company, possibly the largest orthopedics business in the world. The anticipated acquisition raised concerns with European antitrust authorities due to its size, which prompted Biomet’s agreement to acquire a portion of DePuy Orthopaedics.

The European Commission in Brussels said in November that it was concerned that the merger of J&J and Synthes would cause a rise in orthopedic device prices —in other words, it would create a monopoly. J&J had a hearing before European Union antitrust regulatory officials in February.
J&J currently is working with European antitrust authorities to finalize the acquisition of Synthes, while Biomet’s agreement will expire on June 1.

“We believe this divestiture will satisfy all regulatory concerns relating to the pending purchase of Synthes by Johnson & Johnson, but we will not know with certainty until the regulatory processes in the E.U. and U.S. are completed,” said Bill Price, vice president of media relations at J&J. The Biomet offer can be extended under certain circumstances.

With the DePuy purchase, Biomet expects expanded presence in the sports, extremities and trauma businesses, according to Jeffrey R. Binder, president and CEO of the Warsaw, Ind.-based firm.

Covidien Banks on Future of New Technology Covidien has agreed to buy Israel-based SuperDimension Ltd. for about $300 million initially plus possible future payments.

The privately held company develops minimally invasive interventional pulmonology devices. Its annual sales total about $30 million, according to Covidien.

The deal, which is subject to customary closing conditions and regulatory approvals, is expected to close in the second quarter of this year. The purchase also follows a continuing industry trend toward more cost-effective procedures to tackle declining patient volumes, as fewer Americans opt for expensive treatments in light of a weakening economy.

SuperDimension’s iLogic system uses electromagnetic navigation bronchoscopy to provide access to lesions deep in the lungs. By extending the reach of conventional bronchoscopes, the system makes it easier for doctors to evaluate lung lesions, potentially allowing safer, more effective tissue biopsies.

“Covidien’s strategy is to invest in clinically and economically relevant products and technologies which can meaningfully improve patient outcomes while reducing the overall cost of care,” said Bryan Hanson, president of Covidien’s Surgical Solutions division. “The acquisition of SuperDimension will position Covidien to continue its investment in meaningful innovation by delivering more comprehensive solutions in the evaluation and treatment of lung diseases.”

Covidien officials don’t expect the acquisition to have a significant impact on its fiscal 2012 sales, but the deal is expected to slightly lower its fiscal 2012 earnings per share.

Given that Covidien paid 10 times the amount of SuperDimension’s annual sales, the company is betting that this will be a good long-term move.

Gabelli & Co. analyst Jeff Jonas told Reuters that several other industry giants including Medtronic Inc. were interested in buying SuperDimension. According to rumor, a bidding war culminated in Covidien eventually agreeing to pay $300 million.

Though based in Ireland, most of Covidien’s operations are led out of Mansfield, Mass.
Partnership and Possible Purchase Target for AngioDynamics AngioDynamics has established a “strategic relationship” with Microsulis Medical in Denmead, England, according to press releases from both companies.

AngioDynamics has invested $5 million in Microsulis, establishing 14.3 percent ownership. The companies share common interests: AngioDynamics provides minimally invasive medical devices for vascular access, surgery, peripheral vascular disease and oncology, while Microsulis specializes in minimally invasive, microwave ablation technology for the coagulation of soft tissue. Moreover, Microsulis has a presence in more than 80 hospitals globally, according to the company.

Microsulis has minimal representation in the United States, with five sales representatives for all 50 states. Its partnership with AngioDynamics will expand its reach in North America. On the other hand,
AngioDynamics will benefit from Microsulis’ broader presence in Europe. AngioDynamics has been granted exclusive distribution rights to market and sell the Accu2i pMTA microwave ablation system in all markets outside the United States from May 2012 through December 2013. The company also has the exclusive option to purchase substantially all of the global assets of Microsulis, including the microwave ablation technology and its worldwide distribution rights until Sept. 22 this year.

The Accu2i pMTA microwave ablation system is Microsulis’ flagship product. The system is intended for percutaneous use, which means accessing internal organs with the use of a needle rather than cutting with, for instance, a scalpel. This particular system utilizes a single, high power, high frequency needle that is saline-cooled and was cleared by the U.S. Food and Drug Administration in August 2010.

Albany, N.Y.-based AngioDynamics is expecting to see a “modest” revenue influx from this partnership in fiscal year 2012, according to President and CEO Joe DeVivo.