Covidien Buying PillCam-Maker Given Imaging For $860 Million

By Sara Jerome,
@sarmje

Medical device maker Covidien announced this week that it has agreed to buy Israel's Given Imaging, developer of the PillCam capsule endoscope and other technologies for visualizing, detecting, and monitoring gastrointestinal (GI) disorders. Covidien is paying $30.00 per share in a total of $860 million, Reuters reported.

PillCam "is used to detect and monitor gastrointestinal bleeding and colon abnormalities," the Wall Street Journal reported. "The pills are the size of large vitamins and have miniature cameras embedded inside. They wirelessly transmit images to recording devices that the patient wears tied around his waist."

In a release announcing the deal, Covidien said the transaction provides it with "additional scale and scope to serve the multibillion dollar global GI market."

Bryan Hanson, a top Covidien executive, said: “Adding Given’s portfolio of diagnostics to our portfolio accelerates Covidien’s strategy of providing physicians with products that support the patient along the care continuum from diagnosis to treatment. It also confirms our leadership in developing less-invasive screening, diagnosis and treatment solutions that can improve patient outcomes and lower healthcare costs.”

Nachum Shamir, Given Imaging’s president and chief executive, added: “After thoroughly evaluating our strategic options we determined that this transaction is in the best interests of Given Imaging, its shareholders and employees and provides unique benefits to patients globally.”

Regulatory approval is needed before Given Imaging the transaction is official. An OK from Given shareholders is also needed, Covidien said. The company anticipated it will get those clearances before April of next year. 

Covidien most recently made news for cutting costs — and employees. The company "is shedding nearly 150 jobs worldwide, including about 70 at its U.S. headquarters in Mansfield as part of a five-year plan to cut costs," the Boston Globe reported last month.

Image Credit: Given Imaging