jueves, 19 de agosto de 2010

Medtronic to buy Osteotech for $123 million

Medtronic’s stock was given a small boost after revealing plans to acquire fellow US group Osteotech for $123 million, but the latter’s shareprice rocketed 64% following the news.
The companies have signed a definitive agreement under which Medtronic will buy Osteotech, which specialises in biologic products for regenerative healing, for $6.50 per share in cash.
With the move Medtronic gains access to Osteotech’s portfolio which includes MagniFuse Bone Grafts and Plexur Biocomposites, used in a variety of musculoskeletal surgical procedures, and the first product based on its first-in-class HCT (Human Collagen Technology) platform, for which US regulatory approval is currently being sought.
According to Medtronic, taking Osteotech under its wing will not only complement its existing portfolio but also opens doors to several other therapeutic areas, such as joint restruction and sports medicine.
“This acquisition represents a key step in Medtronic's strategy to build a broader business in regenerative biologics,” said Chris O’Connell, Medtronic executive vice president and Restorative Therapies Group president. “Osteotech's products and capabilities will better position Medtronic in today's competitive musculoskeletal biologics market, and also position the company more broadly for the opportunity we see in the future.”
Tom McGuinness, general manager of Medtronic’s Biologics business, noted that the company sees “substantial opportunities during the next five to 10 years to help more patients with biologics and regenerative therapies”, and that the merger “will only accelerate our innovation and progress against our goals in helping to alleviate pain, restore health, and extend life for our patients”.


--Published in "Pharma Times"

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