Stryker Announces $4.9 Billion Acquisition of Inari Medical to Enter Peripheral Vascular Market

Jan 07, 2025 16:07 CST Updated 16:07

Inari Medical

Cardiovascular Disease Treatment Device Developer

Stryker

Orthopedic Product Developer

On January 6, 2025, Stryker (NYSE: SYK) announced that$80 per shareCash AcquisitionInari Medical, with a total transaction value of approximately$4.9 billion（Contract 36 billion RMB）。

Inari Medical is a company focused on the treatment of venous thromboembolism (VTE), with products including mechanical thrombectomy devices for treating diseases such as deep vein thrombosis and pulmonary embolism.

This acquisition marks Stryker's official entry into the peripheral vascular market, where Inari Medical's products will be highly complementary to Stryker's neurovascular business, further enhancing its position in the peripheral vascular field.

# Acquisition Details

Stryker has reached a definitive agreement to acquire Inari Medical at a price of $80 per share, bringing the total value of the deal to $4.9 billion at a premium.Before the deal was announced, Inari Medical's stock price was about $48.

The transaction has been approved by the boards of directors of Stryker and Inari Medical. The two companies expect to complete the transaction by the end of the first quarter of 2025, subject to the tender of a majority of Inari's outstanding shares, regulatory approvals, and other customary conditions.

Acquisition Analysis

Analysts at Needham & Co. expect the deal to add about 30 basis points to Stryker's organic growth, with gross margin expanding by approximately 70 basis points, but the transactionExpectedWill dilute Stryker's 2025 earnings per share by approximately 2.4%.

BTIG analyst Ryan Zimmerman said that Stryker is facing competition from Penumbra, as Penumbra has captured part of the peripheral vascular market share by launching Lightning Flash and Bolt. Despite Stryker's acquisition of Inari Medical, Penumbra's thrombectomy business is still expected to outperform the market.

"Stryker may not need to worry about Penumbra's competition in the short term, but in the long run, Stryker needs to overcome this issue."

# Core Products

Inari Medical's product portfolio includes a variety of nitinol devices and systems used to treat different vascular conditions, includingFlowTriever System, ClotTriever System, LimFlow System, Artix Thrombectomy Systemetc.

FlowTriever Large-Bore Mechanical Thrombectomy System

FlowTriever isThe world's first product for the treatment of pulmonary embolismThe mechanical thrombectomy system received FDA approval in 2015.

FlowTriever is aLarge-diameter device mechanically engages thrombus in the pulmonary artery via a self-expanding nitinol mesh., when the large-diameter catheter aspirates, the nitinol disc retracts into the catheter and entrains the thrombus.The device can directly remove blood clots without the need for auxiliary thrombolytic drugs.Currently, only the EkoSonic Endovascular System and the FlowTriever System have been FDA-approved for the treatment of acute pulmonary embolism.

The FlowTriever system is available in four sizes: S (6-10 mm), M (11-14 mm), L (15-18 mm), and XL (19-25 mm).。

ClotTriever Peripheral Vein Thrombectomy Stent System

ClotTriever is specifically designed forDeep Vein ThrombosisThe innovative mechanical thrombectomy device developed by the company received FDA approval in 2017.

ClotTriever is an innovative mechanical thrombectomy device specifically developed for deep vein thrombosis, and it received FDA approval for market release in February 2017. This product series includesClotTriever Catheter, ClotTriever BOLD Catheter, ClotTriever XL Catheter, andClotTriever Sheath。

ClotTriever Catheter:ClotTriever CatheterThere is a non-traumatic core element that can separate and extract thrombi adhering to the vascular wall from blood vessels.ProductAchieve full vessel wall apposition in vessels ranging from 6 to 16 millimeters, to collect and remove thrombus.The system includes a Nitinol collection bag designed to capture and remove blood clots.
ClotTriever BOLD Catheter:With a shorter collection bag and HyperClear™ technology.HyperClear™ technology is a surface treatment innovation technology,Aimed at reducing the adhesion of thrombus in the collection bag, thereby improving clearance efficiency and reducing operation time.
ClotTriever XL Catheter:Specifically designed for large vessels, used for efficient thrombus removal, suitable for vessel treatment ranging from 10-28mm. The ClotTriever sheath features a self-expanding nitinol funnel design, one-handed hemostasis valve operation, and 360° conformity to achieve better thrombus removal while minimizing blood loss.

ClotTriever Peripheral Vein Thrombectomy Stent SystemInApproved by the U.S. FDA in February 2017, and has been marketed and used in multiple countries around the world, including the European Union, Australia, Canada, Argentina, Brazil, Israel, Singapore, and New Zealand.Treated more than 50,000 patients with DVT (deep vein thrombosis)。

LimFlow System

The LimFlow system is a minimally invasive technology for the treatment of chronic limb-threatening ischemia (CLTI), which received premarket approval (PMA) from the U.S. FDA in September 2023, becomingThe first and only FDA-approved TADV (Transcatheter Deep Vein Arterialization) device(As of January 7, 2025). The system is suitable for CLTI patients who have no appropriate endovascular or surgical revascularization options and are at risk of amputation.

The LimFlow system consists of stent grafts, arterial catheters (ARC), venous catheters (V-Ceiver), and valvuloplasty devices (Vector) components. The system bypasses occluded arteries through TADV technology, delivering arterial blood to ischemic and hypoxic tissues in the foot via veins, thereby alleviating pain, promoting wound healing, and potentially avoiding amputation.

Artix Thrombectomy System

In November 2024, Inari Medical's next-generation peripheral artery integrated thrombectomy system, Artix, received FDA approval.Artix system, used for treating Acute Limb Ischemia (ALI). The Artix system combines the functions of aspiration and mechanical thrombectomy, aiming to improve surgical standards and reduce complications.

The system includes the following main components:

FlowSaver Blood Recovery System:Used for collecting thrombus and separating blood.Through its internalA 40μm filtration device separates thrombus from blood, and the separated blood can be reinfused into the patient’s body to avoid excessive blood loss during surgery.
Artix AX Aspiration Catheter:The distal end is an inflatable funnel, ensuring that the thrombus can be drawn into the catheter more effectively and preventing small thrombus fragments from escaping.
Artix Thin-Walled Thrombectomy Sheath:With a low profile and enhanced trackability for arterial thrombectomy.
Artix MT Thrombectomy Stent:Made of braided nitinol, the stent design also includes a variable mesh structure for effective thrombus capture.

The design goal of the Artix system is to capture all thrombi through a single system. This integrated solution can effectively remove thrombi and alleviate symptoms of acute limb ischemia.

# VTE Market Forecast

DVT Market

Deep Vein Thrombosis (DVT) is a disease characterized by abnormal blood clotting within deep veins, leading to venous reflux obstruction, commonly occurring in the lower limbs.

For patients with acute deep vein thrombosis (DVT), the use of A/C anticoagulants alone may leave residual thrombus in up to half of the patients (anticoagulants are used during mechanical thrombectomy to prevent further clot formation and propagation).

Thrombolytics cannot address chronic thrombus issues and carry a risk of bleeding.Up to 50% of patients may develop post-thrombotic syndrome (PTS).Inari Medical stated,PartPatients opt for conservative treatment, while some choose to undergo intervention. In the United States, there are at least 430,000 such patients, and the market size is expected to reach$3 billion。

Pulmonary Embolism Market

Pulmonary Embolism (PE) is a condition caused by the obstruction of the pulmonary artery or its branches by an embolus (usually a blood clot).

Pulmonary embolism is the third leading cause of cardiovascular death. When anticoagulants (A/C) are used alone to treat PE, blood clots may remain in up to half of the patients. Moreover, long-term complications of PE are common, including chronic thromboembolic pulmonary hypertension (CTEPH) and limited exercise capacity. These complications can affect patients' quality of life and functional status.There are at least 280,000 PE patients in the United States, and the market size is expected to reach$2.8 Billion。

# Performance

In the first half of 2024, Inari Medical's revenue289 millionDollar, year-on-year growth22.9%. Among them,

Venous Thromboembolism (VTE) Business Revenue$275 million, year-on-year growth20.5%；
Revenue from Emerging Therapies$14 million, year-on-year growth101.3%。

Gross profit for the third quarter of 2024 was$133.5 million`, Gross margin is`87.1%。Revenue for the third quarter was1.53Billion US dollars, an increase of over the same period last year21%. This growth is mainly attributed to the expansion of its sales regions, acquisition of new users, increase in surgical procedures, global commercial expansion, and launch of new products.

Despite a GAAP operating loss in the third quarter of 2024, Inari Medical remains optimistic about its future growth prospects, particularly due to its outstanding performance in international markets. Additionally, Inari Medical plans to achieve operational profitability in the first half of 2025.

Inari Medical's market position and growth potential make it an ideal target for mergers and acquisitions.Stryker's acquisition of Inari Medical will provide new momentum for its further development in the peripheral vascular field.

# Conclusion

Stryker's Acquisition of Inari Medical is 202The First Super in 5 Years$1 Billion Mega-Acquisition Expected to Greatly Boost Market Confidence, Signaling Corporate Optimism and Expansion Resolve

Following the announcement of the acquisition, Inari Medical's stock price surged significantly, which could attract more investor attention to this technology sector and accelerate further market development.

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