FinancialRegulatory

Medtronic Acquisition of Covidien Receives U.S. FTC Clearance

WASHINGTON—U. S. authorities on Wednesday approved Medtronic Inc. ’s $43 billion merger with fellow medical device maker Covidien PLC after requiring the spinoff of a drug-coated catheter business.

The Federal Trade Commission required Minneapolis-based Medtronic to sell off Ireland-based Covidien’s catheter business before completing the acquisition. That $30 million sale, to Colorado-based Spectranetics Corp. , was announced earlier in November.

The FTC said it required the sale because Medtronic and Covidien both are developing drug-coated catheters to treat peripheral artery disease and both have products undergoing clinical trials.

Under a proposed consent order, a monitor will supervise the transfer of Covidien’s drug-coated catheter business to Spectranetics. The FTC approve the deal in a 5-0 vote. Canadian officials also approved the deal Wednesday.

The merger, combining two of the world’s largest medical-supply companies, is expected to close in early 2015, Medtronic Chief Executive Omar Ishrak said on a Nov. 18 conference call with analysts. The companies plan to hold a special meeting in January to seek shareholder approval.

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Josh Sandberg

Josh Sandberg is the President of Ortho Sales Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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