A week after an Israeli publication reported that Covidien was in advanced negotiations with Minnesota pulmonary device maker superDimension, the Massachusetts-based healthcare company announced that it is buying superDimension for about $300 million.
The Minnesota company’s iLogic system diagnoses and treats lung cancer using electromagnetic navigation bronchoscopy.
“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, Surgical Solutions, Covidien, in a news release. “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.”
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
The transaction, which is expected to close in the second quarter, will bring superDimension, which was founded in Israel, under Covidien’s Endomechanical product line within its medical devices segment.
The acquisition comes three months after Covidien announced that it would divest its pharmaceuticals business to concentrate on its medical products business. Based on 2011 reported sales, the company’s management estimates that Covidien’s medical products business would have annual sales of $9.6 billion provided the spinoff is successful.
[Photo Credit: Arvind Balaraman]
