Stryker Acquires Inari Medical in $4.9 Bn Deal to Expand Vascular Device Portfolio

Following the announcement, Inari's shares surged over 30% during regular trading hours and rose an additional 21% in extended trading. This marked a significant recovery from the company's previous 12-month decline of 21%, outperforming the S&P 500 Health Care Equipment index.

Medical device company Stryker has announced an all-cash acquisition of Inari Medical for $4.9 billion, aiming to enhance its vascular treatment offerings. The acquisition will enable Stryker to strengthen its portfolio for treating venous thromboembolism and other vascular diseases.

Under the agreement, Stryker will pay $80 per share for Inari, a deal that received board approval from both companies, as reported by the Reuters. 

"The acquisition of Inari expands Stryker's portfolio to provide life-saving solutions to patients who suffer from peripheral vascular diseases. These innovations elevate the standard of care for venous thromboembolism patients and will accelerate Stryker’s impact in endovascular procedures," said Stryker CEO Kevin Lobo.

Inari Medical, based in Irvine, California, specializes in devices that treat conditions like pulmonary embolism, deep vein thrombosis, and in-stent thrombosis.

Founded in 2013, Inari had been exploring a sale following acquisition interest from Stryker and other parties. The transaction is expected to close by the end of the first quarter of 2025.

Following the announcement, Inari's shares surged over 30% during regular trading hours and rose an additional 21% in extended trading. This marked a significant recovery from the company's previous 12-month decline of 21%, outperforming the S&P 500 Health Care Equipment index.

Stryker, headquartered in Michigan with a market value of approximately $138 billion, focuses on devices for orthopedics, neurotechnology, and spinal procedures. The acquisition aligns with Stryker's strategy to capitalize on the increased demand for medical implant devices, driven by a rise in surgical procedures post-COVID-19.

For the quarter ending September 30, Inari reported a 21% revenue growth but posted an operating loss of $13.6 million. The company projected a return to profitability by the end of the fourth quarter, citing strong demand for its devices.

Stryker’s latest financial results showed an optimistic outlook, with the company raising its annual profit forecast based on robust demand for its medical devices.

Citi and law firm Sidley Austin advised Stryker, while Morgan Stanley and Wachtell, Lipton, Rosen & Katz advised Inari on the deal.

Stay tuned for more such updates on Digital Health News.