In a half year that has turned heads with milestone medtech deals popping up by the dozen—including Stryker’s $2.97 billion buyout of Vocera Communications, Becton Dickinson’s stated intention to purchase Parata for $1.53 billion, and ResMed’s $1 billion MediFox Dan acquisition—Boston Scientific isn’t going to let 2022 conclude without making its own historic investment, especially after a hot 2021 that saw it ink deals for five companies. Indeed, the medical solutions innovator is making headlines with its agreement to shell out $230 million for an estimated 64% majority ownership of seven-year partner M.I.Tech, a South Korean manufacturer of endoscopic and urologic medical devices.
This deal surely makes sense, given that in addition to providing an extra international notoriety boost, M.I.Tech’s product line ties in nicely with Boston Scientific’s non-vascular stent portfolio. RBC Capital Markets, Needham, and BTIG analysts were accordingly optimistic about the news, seconding the notion that the complementary portfolios will mesh to further the advancement of medtech and carve out new areas in their shared space. “According to [Boston Scientific] management, the deal’s strategic rationale broadens [Boston Scientific’s] product portfolio in a high growth area, by adding clinically differentiated conformable stents with new features, sizes, and designs, which are complementary to [Boston Scientific’s] existing endoscopy business,” wrote RBC analysts. “[Boston Scientific] will look at options to bring its sales organization together in some geographies to more broadly and collaboratively sell M.I.Tech products.” The analysts mentioned that competing companies such as J&J, Medtronic, and Abbott Laboratories also have investment takeovers on their agendas, and certainly “have resources to allocate even as the current market environment is likely to drive some caution.”