Zimmer Biomet Holdings Inc. (ZBH) agreed to acquire Embody Inc. for $155 million at closing with an additional $120 million in contingent milestone payments over the next three years. The deal includes Embody’s entire portfolio of collagen-based regenerative solutions for soft tissue injuries. The transaction is expected to close in February.
After a flood of deals with special purpose acquisition companies (SPACs) that took dozens of med-tech and biotech companies public in 2021, deal flow slowed to a trickle in 2022. Market conditions factored into the collapse of interest, but regulatory changes also played a significant role. Still, several notable companies made their market debuts via SPACs in 2022 – and one changed its mind mid-stream.
The latest U.S. Federal Trade Commission (FTC) hearing on the merger between Illumina Inc., and Grail Inc., highlighted some sharp disagreements over the impact of the transaction on the market for multi-cancer early detection (MCED) tests, but Illumina has vowed to take steps to blunt any such effects in an open offer.
Transition ultrasound startup QT Imaging Inc. is poised to go public via a merger with Gigcapital5 Inc., a special purpose acquisition company (SPAC), in a deal that puts the equity value of the combination at $151 million. The combined company, QT Imaging Holdings Inc. will be traded on the NYSE under the ticker symbol QTI.
Full-Life Technologies Ltd. reported that it will acquire Focus-X Therapeutics Inc. to expand its radiopharmaceutical oncology therapy pipeline in a deal worth up to $245 million.
Full-Life Technologies Ltd. reported that it will acquire Focus-X Therapeutics Inc. to expand its radiopharmaceutical oncology therapy pipeline in a deal worth up to $245 million.
Integra Lifesciences Holding Corp. agreed to acquire Surgical Innovation Associates Inc. (SIA) in a deal that could be worth $140 million, the companies reported. Integra will pay $50 million on closing, expected by the end of the year. The company will pay an additional $90 million contingent on achievement of certain revenue and regulatory milestones through 2026.
While other large med-tech companies are slimming their portfolios, Boston Scientific Corp. plans to beef its up considerably with the acquisition of Apollo Endosurgery Inc. for $10 per share for the 41.7 million shares outstanding or $417 million. Including the debt assumed, the all-cash deal has an enterprise value of $615 million. The $10 per share price represents a 67% premium to the Nov. 28, 2022, $6 close for Apollo shares. The companies expect the transaction to close in the first half of 2023.
Digital health remains a primary driver of med-tech partnerships and mergers, accounting for 67.3% of all deal activity and 49.9% of the completed M&As in 2022.
Evolent Health Inc. agreed to acquire Magellan Specialty Health from Centene Corp. in a deal worth up to $750 million. The companies also reported a strategic partnership to continue and expand Centene’s relationship with Magellan Specialty Health.
