On January 13, 2025, global medical technology giant Medtronic (NYSE: MDT) announced that it had reached an exclusive distribution agreement with Contego Medical in the United States. In addition, Medtronic's additional investment in Contego and the option to acquire the company are also important components of this agreement.

01. Exclusive distribution and locked acquisition
According to the agreement signed with Contego Medical, Medtronic will become the sole distributor of Contego's existing commercial product portfolio in the US market. Contego Medical focuses on providing innovative revascularization treatment options aimed at treating carotid and peripheral vascular diseases. Its product portfolio has gained widespread recognition in the medical industry for its unique technology and clinical efficacy.

This agreement specifically covers Contego's recently approved Neuroguard IEP 3-in-1 carotid stent system by the US Food and Drug Administration (FDA). The system integrates high-performance stents, posterior dilation balloons, and embolization protection (IEP) filters, providing safer and more effective treatment options for patients with carotid artery disease. In addition, Contego also provides Excipio peripheral thrombectomy equipment and is developing the next generation of Neuroguard IEP system with direct carotid access and protection system.
Medtronic's additional investment in Contego and the option to acquire the company are also important components of this agreement. Since 2020, Medtronic has held a minority stake in Contego, and this additional investment further demonstrates Medtronic's recognition of Contego's innovation capabilities and market prospects.

Dr. Ravish Sachar, founder and CEO of Contego Medical, expressed high expectations for this collaboration: "This strategic agreement is an important milestone for both Contego Medical and Medtronic. By combining our innovative product portfolio with Medtronic's extensive market influence and clinical leadership, we have the potential to revolutionize the field of revascularization therapy for carotid and peripheral vascular diseases. This partnership not only enhances our ability to provide cutting-edge solutions for patients, but also strengthens our commitment to expanding treatment accessibility across the United States.

David Moeller, Senior Vice President and President of Medtronic's Peripheral Vascular Health Division, is confident in the prospects of cooperation: "Contego's innovative products supported by excellent data are changing the treatment of carotid artery disease and complement Medtronic's combination of peripheral and stroke protection products. This strategic agreement with Contego Medical not only expands our commitment to this rapidly growing carotid artery market, but also demonstrates Medtronic's unwavering determination to drive innovation and enhance patient care.

It is reported that Medtronic plans to utilize its peripheral vascular and neurovascular commercial teams to begin distributing Contego products this spring. This collaboration is expected to bring more innovative treatment options for patients with carotid and peripheral vascular diseases in the US market, further improving their quality of life and treatment outcomes.

02. Small yet sophisticated Contego Medical
Contego Medical is an innovative medical device company dedicated to providing innovative revascularization treatment options for the treatment of carotid and peripheral vascular diseases. There are two product lines: carotid artery and peripheral products.

Contego Medical's flagship product for carotid arteries is the Neuroguard IEP, which received pre-market approval (PMA) from the US Food and Drug Administration (FDA) in October 2024 ® System. The agreement with Medtronic also specifically covers this product.

Neuroguard IEP ® The system is an innovative "three in one" therapy that integrates a carotid stent (using a closed-loop design), a posterior dilation balloon, and an IEP system filter. This design not only simplifies the operational steps of surgical treatment, but also maintains effective protection for larger and micro emboli, thereby improving the safety and efficacy of surgery.

IEP filter as Neuroguard IEP ® The key components of the system are uniquely designed. This filter consists of a 6F delivery catheter and a 40 μ m pore size plug filter, which has several significant application advantages.

Firstly, compared to traditional filters, the filter aperture of the IEP system has been reduced by 3-4 times. This improvement enables the filter to more effectively capture emboli, significantly enhancing its ability to protect against stroke and cognitive impairment. This is of great significance for reducing surgical complications and improving patients' quality of life.

Secondly, IEP filters have good adhesion. The operator can flexibly adjust the size of the filter according to the specific needs of the patient to accurately fit the patient's anatomical structure. This personalized adjustment not only improves the accuracy of the surgery, but also ensures the stability and effectiveness of the filter.

In addition, IEP filters also have short-term and long-term stable durability. During use, no thrombosis or target lesion revascularization was observed, and the restenosis rate within 1 year was extremely low. This data fully demonstrates the safety and reliability of IEP filters, providing clinical doctors with more powerful treatment tools.

The company's peripheral products include Vanguard system and Excipio ® Thrombolysis device.

03. Acquisition of Medtronic
In the medical device industry, Medtronic firmly holds the top spot with its outstanding innovation culture, outstanding management team, and successful acquisition history. Especially with its series of significant acquisitions over the past 25 years, Medtronic has not only become a leader in the medical device industry, but also consolidated its leading position in the global medical device market. However, acquisition is not an easy task, even the "big brother" Medtronic has had failed cases.

Here are 12 historic acquisitions by Medtronic:
In 1998, Medtronic acquired Physio Control, a manufacturer of external defibrillator products, for $538 million. This acquisition strengthened Medtronic's position in the defibrillator market, but the good times did not last long. In 2006, Medtronic chose to split Physio Control, which eventually became part of Stryker. In the same year, Medtronic also acquired stent product manufacturer Arterial Vascular Engineering for $3.7 billion, making it the world's largest stent manufacturer at the time. In 1999, Medtronic acquired Sofamor Danek Group, a spinal product manufacturer, for $3.6 billion. This acquisition greatly expanded Medtronic's market share in the spinal industry, making it a leader in the treatment of spinal diseases. Although Medtronic paid a settlement of $1.35 billion in 2005 for Sofamor Danek Group's intellectual property issues, this acquisition still holds significant importance for enhancing Medtronic's position in the musculoskeletal field. In 2001, Medtronic acquired the insulin pump manufacturer MiniMed with US $3.7 billion, successfully entering the field of diabetes treatment, and quickly became the leader in this field. Since then, Medtronic's continuous innovation and development in the field of diabetes treatment have benefited from this successful acquisition. In the spinal field, Medtronic has also made a significant acquisition. In 2007, Medtronic acquired another spinal product manufacturer, kyphon, for $3.9 billion. This acquisition has established Medtronic's foothold in minimally invasive spine surgery solutions, complemented its existing spine product portfolio, and driven growth in high-value, rapidly developing niche markets. In the same year, Medtronic also acquired CoreValve, a TAVR product manufacturer, for $1 billion. Through this acquisition, Medtronic has become a leader in the field of valve intervention. Now, with CoreValve's upgraded TAVR product - evolve, Medtronic is expected to take the lead in the global TAVR market. In 2012, Medtronic acquired Kanghui, a leading orthopedic product manufacturer in China, for $816 million. This acquisition expands Medtronic's influence in China, the world's second-largest medical device market, particularly in the orthopedic market. In 2015, Medtronic acquired the top ten global medical device company, Koch, for a staggering $42.9 billion. This is an unprecedented acquisition in the history of Medtronic and global medical device history. This acquisition has enabled Medtronic to overthrow Johnson&Johnson's dominance in the medical device industry, becoming the leader in the device industry and consistently dominating the charts to this day.

However, acquisitions are not always smooth sailing. In 2016, Medtronic acquired HeartWare, a manufacturer of left ventricular assist devices, for $1.1 billion, but this acquisition became a major failure in Medtronic's acquisition history. HeartWare's products have exited the market, and Medtronic has also withdrawn from the left ventricular assist market as a result, spending $1.1 billion in vain and facing huge compensation.

In the field of spine, Medtronic also had a great acquisition. In 2018, Medtronic acquired Mazor Robotics for $1.64 billion. Through this acquisition, Medtronic combines surgical robots with existing surgical technologies, further strengthening its absolute leadership in the field of spine.
In recent years, Medtronic has also made an important acquisition in the field of electrophysiology. In 2022, Medtronic acquired Affera for $925 million. This acquisition not only gives Medtronic advanced radiofrequency ablation and PFA technology, but also gives it the coveted 3D mapping technology. This enables Medtronic to challenge Johnson&Johnson and potentially become the future leader in electrophysiology.

In the same year, Medtronic also acquired Intersect ENT, a chronic rhinosinusitis treatment technology supplier, for $1.1 billion. Through this acquisition, Medtronic has expanded its ear, nose, and throat surgery product portfolio and improved its treatment plan for chronic rhinosinusitis. This enables Medtronic to provide a complete solution for patients with chronic rhinosinusitis, including radiofrequency ablation, sinus irrigation systems, sleep disordered breathing products, targeted drug therapy, and further consolidates its leadership position in the field of chronic rhinosinusitis.

Summarizing Medtronic's acquisition strategy over the past 30 years, its goals are clear and specific, mainly including four aspects:
 Acquiring new technologies as a technological reserve or eliminating potential competitors. By acquiring companies with advanced technology or innovative products, Medtronic can quickly acquire new technologies, enhance its own technological reserves, and to some extent eliminate potential competitors. For example, Medtronic entered the insulin pump market through the acquisition of MiniMed and quickly became a leader in the field, which not only brought advanced technology to Medtronic but also eliminated the threat of other potential competitors.
 Consolidate and strengthen existing businesses, and expand market share. Medtronic has further consolidated and strengthened its position in existing business areas by acquiring companies related to its own business, and successfully expanded its market share. For example, after acquiring kyphon, Medtronic expanded its market share in spinal products and consolidated its leadership position in the field of spinal disease treatment.
 Expand product business and enter new markets. Medtronic has entered new business areas through mergers and acquisitions, achieving product diversification and market diversification. Through the acquisition of Koch Healthcare, Medtronic has entered multiple new fields such as surgery and neurointerventional procedures, achieving significant product line enrichment and market coverage expansion.
 Functional integration to achieve strategic transformation. Through mergers and acquisitions, Medtronic not only acquired new technologies and products, but also achieved functional integration, driving the company's strategic transformation. For example, Medtronic became the world's largest stent manufacturer at the time by acquiring Arterial Vascular Engineering, achieving a strategic transformation from a single pacemaker manufacturer to a leader in the field of cardiovascular intervention devices.

Through outward mergers and acquisitions, Medtronic has found new performance growth points at different stages, achieved sustained growth, and its integration after the merger is more synergistic. This synergy is not only reflected in the integration of product lines and technologies, but also in sales models, market expansion, customer service, and other aspects.

Source: http://qixieke.com/Font/index/detailPage.html?id=3332-142