US medical device manufacturers St. Jude and Abbott will strip part of the blood vessel and electrophysiology business

As one of the most competitive industries, the medical device industry seems to be the most thorough implementation of the “Matthew effect”. In the past few years, many medical device giants have expanded their market share through mergers and acquisitions. Since last year, the rumors surrounding the acquisition of another pharmaceutical giant, St. Jude, by Abbott have also been rampant. Until April of this year, the former finally said that it planned to purchase St. Jude for $25 billion. The company plans to complete the acquisition in the fourth quarter of this year.

Recently, the merger plans of the two sides have seen new developments. To further accelerate the pace of its merger, Abbott and St. Jude agreed to sell their cardiovascular and electrophysiological parts to another company, Terumo. The total value of these sectors is estimated to be around $1.12 billion. After the stripping, St. Jude will no longer own its Angio-Seal and Femoseal cardiovascular products, and Abbott will also lose its Vado Steerable Sheath product line. However, Abbott will continue to retain other cardiovascular product line businesses. The deal is currently undergoing antitrust investigations.

However, St. Jude’s recent days have not been better. The company’s products have been exposed to battery problems. What makes it even worse is that the hedge fund’s water fund has declared a short-selling St. Jude’s high-profile, which has Feeling pressure.

US medical device manufacturers St. Jude and Abbott will strip part of the blood vessel and electrophysiology business

For Abbott, the acquisition of the diagnostic company Alere for $5.8 billion now seems to be a big failure. Although the company hopes to get out of this acquisition, Alere's high-level officials directly in court in August seems to be determined to hold Abbott's "thigh".

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