Stryker Corp to buy Entellus Medical for $662 mn

US medical device maker Stryker Corp yesterday struck a deal to buy Entellus Medical Inc for $662 million, in a bid to strengthen its ear, nose and throat (ENT) business.

The Michigan-based company has offered to pay for $24.00 per share, a premium of about 50 per cent from Entellus's closing price on Wednesday.

Founded in 2006, Minnesota-based Entellus designs minimally invasive products for the treatment of various ENT diseases.

The company has a broad portfolio of ENT products, including the XprESS Multi-Sinus Dilation System and the LATERA Absorbable Nasal Implant, which complements to the existing Stryker's existing ENT portfolio instruments business.

Entellus generated revenue of $23 million in the third quarter and is seeking growth through acquisitions and has made acquisitions of more than 40 medical companies in the past five years.

''Entellus is a leader in the ENT segment and offers a comprehensive portfolio of products that enable physicians to conveniently and comfortably perform a broad range of ENT procedures,'' said Timothy Scannell, group president, MedSurg and Neurotechnology.

''The combination of Stryker's established commitment to making healthcare better and Entellus' innovative products within the ENT segment will continue to provide our customers the tools they need for cost effective solutions,'' said Robert White, CEO of Entellus.

It recently acquired Physio-Control International from private equity firm Bain Capital for $1.28 billion, medical supplies maker Sage Products from private equity firm Madison Dearborn Partners for $2.78 billion.

In late 2014, it was rumoured that Stryker was exploring a $16-billion bid for British medical-device maker Smith & Nephew Plc. 

Founded by Dr. Homer Stryker as the Orthopedic Frame company in 1946, Stryker is one of the world's leading medical technology companies offering a diverse array of medical devices, including reconstructive implants, medical and surgical equipment, and neurotechnology and spine products.

It competes with DePuy Orthopaedics, Zimmer Holdings, Medtronic, Synthes, Smith & Nephew, and Biomet, and holds a 16-per cent share in the global orthopaedic market.

The company sells its products through local dealers and direct sales force to doctors, hospitals, and other healthcare facilities, as well as through third-party dealers and distributors primarily in the US, Ireland, Germany, France, Switzerland, the UK, Japan, Canada, the Pacific region, and Latin America.

While the US market accounts for the bulk of its sales, Stryker has been recently trying to focus and expand in emerging markets like India, Brazil, and China.

Stryker has a market cap of $56 billion, and posted $1.6 billion net income on revenue of $11.3 billion in 2016.