Medtronic to Buy MiniMed $3.7 Billion

(Minneapolis, MN, USA) has announced plans to buy MiniMed Inc. (Northridge, CA, USA) and an allied company, Medical Research Group Inc. (Sylmar, CA, USA), for US$3.7 billion in cash and stock, Of the total, Medical Research Group will receive $420 million in cash and stock.

MiniMed has developed a small portable insulin pump that it believes will benefit many diabetes patients. The company owns 8% of Medical Research Group. The two firms have been collaborating on developing an insulin pump that is implantable and automatically adjusts the insulin level of the patient wearing it--which would greatly aid diabetes patients trying to control their glucose level.

Medtronic, an important supplier of pacemakers and defibrillators for cardiac rhythm management, has made a large number of acquisitions in recent years that have provided the company with products for cardiac surgery and the treatment of neurologic and spinal problems. With this new acquisition, the company will become a presence in the increasingly important field of diabetes.



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