Medtronic Rumored to Be Looking at a Deal with LivaNova

Reorg Research reported that Medtronic is in early-stage acquisition talks with LivaNova, news that has been well received by LivaNova shareholders. The firm said Medtronic would subsequently break up LivaNova, keeping its neuromodulation business and selling its cardiovascular business. The article does note, however, that Boston Scientific, Edwards Life Sciences, and Johnson & Johnson may also be interested in the London-based company. Mike Matson, an analyst at Needham & Co., performed a sum-of-parts analysis that values LivaNova's cardiovascular and neuromodulation businesses separately. His analysis suggests that LivaNova's cardiovascular business is worth $1.4 billion and its neuromodulation business is worth $2.5 billion, putting the overall value at $3.9 billion. "While we think that this deal could make sense since it would bolster [Medtronic's] neuromodulation business and since we believe that [LivaNova] is undervalued particularly considering its pipeline, we think it is far from a certainty," Matson said in a report issued Friday. Medtronic offers spinal cord stimulation, deep brain stimulation, and sacral neuromodulation products but does not offer vagal nerve stimulation (VNS). LivaNova, on the other hand, is the market leader in VNS and the company's neuromodulation market share is 9%, according to Matson, which would make LivaNova's VNS offering complementary to Medtronic's neuromodulation business. His analysis is based on the...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Cardiovascular Source Type: news