Covidien to Acquire Given Imaging, Developer of the PillCam

The transaction provides Covidien the scale and scope to serve the multibillion-dollar global gastrointestinal market and supports Covidien’s strategy to address fundamental specialties and procedures with the addition of minimally invasive capsule endoscopy to its portfolio of offerings. The transaction subject to customary closing conditions, including Given Imaging shareholder approval, is expected to be completed by end of March 2014.

Given Imaging has one of the broadest technology platforms for visualizing, diagnosing, and monitoring the digestive system, including its flagship PillCam, a minimally-invasive, non-sedation, swallowed optical endoscopy technology for the small bowel, esophagus, and the colon that has helped over 1.5 million patients since its founding over a decade ago. The company’s portfolio includes seven product lines across 21 gastrointestinal (GI) disease states. The company also offers industry-leading GI functional diagnostic solutions including ManoScan high-resolution manometry, Bravo capsule-based pH monitoring, Digitrapper pH-Z monitoring, and SmartPill motility monitoring systems.

Bryan Hanson, group president, Medical Devices & US, Covidien said, “We believe GI is one of the most attractive specialty procedure areas. Acquiring Given will enable Covidien to significantly expand its presence in a USD 3 billion GI market. Adding Given’s portfolio of diagnostics to our portfolio accelerates Covidien’s strategy of providing physicians with products that support the patient along the care continuum from diagnosis to treatment. It also confirms our leadership in developing less-invasive screening, diagnosis and treatment solutions that can improve patient outcomes and lower healthcare costs.”

Homi Shamir, president and CEO, Given Imaging Ltd., said, “Given Imaging revolutionized GI diagnostics over 12 years ago with the launch of PillCam and created an entirely new diagnostic category—capsule endoscopy. The combination of Covidien’s established global presence and Given Imaging’s innovative capabilities has the potential to transform this market. “Commenting on the acquisition, he added, “After thoroughly evaluating our strategic options we determined that this transaction is in the best interests of Given Imaging, its shareholders and employees and provides unique benefits to patients globally.”

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