Stryker to purchase Inari Medical for $4.9 billion

PORTAGE, MICHIGAN - Stryker (NYSE: NYSE:SYK), a prominent medical technology company, has entered into a definitive agreement to acquire Inari Medical (TASE:PMCN), Inc. (NASDAQ: NARI), a specialist in venous thromboembolism (VTE) treatment, for $80 per share in cash. This transaction values Inari at approximately $4.9 billion, representing a significant premium to its current market capitalization of $3.79 billion. According to InvestingPro data, Inari maintains impressive gross profit margins of 86.82% and has achieved 22.41% revenue growth over the last twelve months. The acquisition aims to enhance Stryker's position in the peripheral vascular space and complement its Neurovascular business.

Inari Medical, established in 2011, brings to Stryker a portfolio of mechanical thrombectomy devices designed for conditions such as deep vein thrombosis and pulmonary embolism. While InvestingPro analysis indicates the company is not currently profitable, its strong market position in VTE treatment addresses a significant health concern, potentially affecting up to 900,000 individuals annually in the United States alone. For deeper insights into Inari's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Kevin Lobo, Stryker's CEO, stated that Inari's innovations will elevate the standard of care for VTE patients and accelerate Stryker's impact in endovascular procedures. Drew Hykes, CEO of Inari, expressed confidence that the acquisition would enable further innovation and expansion due to Stryker's global infrastructure.

The transaction will proceed through a tender offer for all outstanding shares of Inari, with both companies' boards having unanimously approved the deal. The offer is subject to customary conditions, including antitrust clearance under the Hart-Scott-Rodino Act and a minimum tender requirement.

The acquisition is expected to close by the end of the first quarter of 2025. Stryker will discuss the expected financial impacts of the transaction on its fourth-quarter 2024 earnings call on January 28, 2025.

This strategic move is anticipated to strengthen Stryker's product offerings and its ability to address critical patient needs in the treatment of peripheral vascular diseases. The information in this article is based on a press release statement.

In other recent news, medical device manufacturer Stryker is in advanced negotiations to acquire Inari Medical, a producer of devices for venous disease treatment. This development follows Inari Medical's record Q3 revenue of $153.4 million, a 21% year-over-year increase, and a raised full-year revenue outlook to between $601.5 million and $604.5 million. Inari's ClotTriever Thrombectomy System for deep vein thrombosis has also received national reimbursement approval in Japan, further solidifying its market position. Analyst firms Oppenheimer and Canaccord Genuity have given Inari an Outperform and Buy rating respectively, with price targets set at $75.00 and $74.00. These recent developments underscore Inari's ongoing efforts in new product launches and market penetration in high-growth international markets.

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