USA – The Federal Trade Commission (FTC) has ordered Medtronic to divest Fiagon, an Intersect subsidiary in order to remove a stumbling block in its US$1.1 billion acquisition of Intersect ENT as part of the deal.
Fiagon, which makes which makes ear, nose, and throat navigation systems and balloon sinus-dilation products, will be sold to White Bear Lake-based Hemostasis.
The regulator requested the divestiture to prevent market consolidation in ear, nose, and throat navigation systems and balloon sinus dilation products.
The companies had anticipated the order. Intersect disclosed in a March securities filing that it had reached an agreement with Hemostasis to sell the Fiagon business, but that the transaction was contingent on an FTC ruling.
In another filing this week, the company stated that all regulatory hurdles for the Medtronic acquisition have been overcome and that the acquisition can now proceed.
Medtronic, headquartered in Dublin but with its operational headquarters in Fridley-USA, announced the Intersect ENT acquisition in August 2021.
According to Business Journal research, it was the 16th largest M&A transaction of last year.
Intersect creates implants that open sinus passageways and deliver an anti-inflammatory steroid to patients with chronic rhinosinusitis (CRS).
CRS affects 35 million people in the United States and frequently necessitates a combination of medical and surgical treatment.
However, the FTC was concerned that the Fiagon products, when combined with Medtronic’s current lineup, would create competitive imbalances.
According to the FTC order, Hemostasis will need prior approval to sell the Fiagon assets for the next three years, and Medtronic and Intersect will need prior approval to buy additional ENT navigation systems and balloon sinus dilation assets for the next ten years.
Earlier on, Medtronic bought a portfolio of products from Acutus Medical Inc., a maker of cardiac medical devices for at least US$50 million.
Acutus of Carlsbad, California, announced the deal on Wednesday, according to Mass Device.
Catheters, needles, sheaths, and other devices used to get from one side of the heart to the other to diagnose and treat arrhythmia in patients are included in the sale.
As part of the transaction deal, Medtronic, will pay US$50 million up front, plus additional undisclosed payments based on milestones and future sales.
Fierce Biotech has a report on what the transaction means for Acutus, which has been looking to cut costs in recent months.