Medtronic acquires Affera and acquires technology to treat heart disease

Medtronic plans to acquire Affera, a private medical technology company, for $ 925 million to expand its portfolio of cutting-edge ablation products as doctors see more patients with heart arrhythmias.

The acquisition is likely to be completed in the first half of Medtronic’s 2023 fiscal year, the company said in a presentation at JP Morgan’s annual healthcare conference on Monday.

The deal is in line with the company’s ongoing commitment to accelerating revenue growth through mergers and acquisitions, Jeff Martha, chairman and chief executive officer of Medtronic, told the conference.

“With Affera, we are entering advanced heart mapping and navigation for the first time,” Martha said. “Enhancing our ability to compete in this important fast growing market.”

In recent years, Medtronic has made a number of AI acquisitions to add new technologies and data analytics to its medical devices. The company is already a strategic investor in Affera with a 3% stake.

Affera’s technologies include a rapid cardiac mapping and navigation platform used to diagnose arrhythmias and a cardiac ablation catheter used to perform cardiac ablation.

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Globally, atrial fibrillation affects nearly 60 million people and has an estimated $ 8 billion in the market for ablation products used to treat progressive disease and prevent heart failure, stroke and death.

The products designed and manufactured by Affera will complement Medtronic’s existing portfolio of atrial and ventricular arrhythmias and help the company provide safe and effective cardiac ablation solutions.

“Affera offers technologies that support clinician clients as they work to improve clinical workflows, procedural efficiency and ultimately optimize patient care,” said Stacy Beske, vice president of strategy, Cardiac Ablation Solutions, Medtronic , in a press release.

Not all Affera products are approved or marketed at this time. In December 2021, the company said it is participating in FDA elimination trials to evaluate the safety and effectiveness of its system for treating persistent atrial fibrillation.

In 2021, Medtronic changed its operating model, selecting leaders to manage its more specific medical specialties and diseases, and setting performance incentives and rewards in line with market share growth.

According to a presentation from JP Morgan, in the third quarter, 14 of Medtronic’s 20 operating units maintained or increased their market share from the prior year, up from nine in the third quarter of 2020.

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