Boston Scientific Agrees to Purchase Majority Stake in M.I.Tech as M&A Deals Are Expected to Pick Up

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On June 15, 2022, Boston Scientific entered into a definitive agreement to purchase a majority stake in M.I.Tech Co., Ltd, a publicly traded Korean medical device company in the field of endoscopic and urological procedures. The agreement includes a purchase price of approximately $230 million.  According to the announcement, M.I.Tech is the creator of the HANAROSTENT® technology, a family of conformable, non-vascular, self-expanding metal stents.  Non-vascular stents can be used in gastrointestinal applications and in airways to clear obstructions or constrictions in areas such as the biliary tree, pancreatic duct, esophagus, colon, and duodenum.

Boston Scientific’s Art Butcher, executive vice president and group president, MedSurg and Asia Pacific, stated:

M.I.Tech is an innovator in non-vascular stent development, with product offerings that complement our existing stent portfolio, including the differentiated AXIOS™ Stent and Electrocautery Enhanced Delivery System and the flexible and conformable Agile™ Esophageal Stent System.  We are committed to investing in technologies that advance care for patients around the world and are eager to work more closely with M.I.Tech to expand their international footprint.

Under the agreement, Boston Scientific will be purchasing a 64% stake in M.I.Tech from Synergy Innovation Co., Ltd, whose website identifies M.I.Tech as a subsidiary and a top 5 player in global non-vascular stents.  M.I.Tech’s website also describes other products such as lithotripter baskets, polypectomy snares, veterinary stents, and glucometers.  The transaction is expected to be completed in the second half of 2022.

According to PwC, semi-annualized M&A deal value in the medical device sector is down 85% this year in comparison to the same period in 2021 when $76.4 billion was invested across 93 deals.  PwC attributes the slow-down to acquirers shifting their focus to integration and value capture activities, while the sector deals with regulatory headwinds and semiconductor shortages.  PwC expects deals to pick up across all pharmaceutical and life science sectors in the second half of 2022, with the medical device sector searching for alternative forms of revenue, particularly from new consumer-centric technologies.

Sabing Lee
Sabing H. Lee's practice includes strategic patent procurement, patent portfolio management, intellectual property due diligence and general counseling on infringement, licensing, international IP protection and post-grant proceedings. Sabing currently represents clients in a wide range of technologies, with an emphasis on medical devices and procedures and materials science. In the medical device field, Sabing has worked extensively with cardiovascular, orthopedic, wound care and aesthetic technologies. He has been involved in the intellectual property strategy and acquisitions of PercuSurge, Inc. (acquired by Medtronic, Inc.), Flex-Foot, Inc. (acquired by Össur hf.), Endius, Inc. (acquired by Zimmer Holdings, Inc.), ev3 Inc. (acquired by Covidien), IDev Technologies, Inc. (acquired by Abbott), and Tornier NV (merged with Wright Medical Group, Inc.), and CardiAQ Valve Technologies, Inc. (acquired by Edwards Lifesciences Corporation). Sabing currently serves on the Board of Directors for OCTANe, an organization that drives technology industry growth and innovation in Orange County by connecting ideas and people with resources and capital. From 2013-2017, Sabing has been recognized as a Southern California Super Lawyer in Intellectual Property by Super Lawyers magazine. He received Star recognition in the 2012, 2013, 2014, 2015 and 2016 editions of LMG Life Sciences, published by Managing Intellectual Property. Sabing was named to the Daily Journal's list of the Top Intellectual Property Attorneys of 2014, where he was recognized among the Top 25 Portfolio Managers & Patent Prosecutors of Intellectual Property. His accomplishments are detailed in the Awards & Honors section. Sabing joined the firm in 1997 and became a partner in 2003.
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