On Monday, Stryker Corporation (NYSE:SYK) agreed to acquire Inari Medical Inc. (NASDAQ:NARI) for $80 per share in cash, representing a total fully diluted equity value of approximately $4.9 billion.
Inari, founded in 2011, will help strengthen the peripheral vascular position in the growing segment of venous thromboembolism (VTE) to Stryker.
VTE is a term for blood clots in the veins, which can lead to serious illness, disability, or death.
Inari’s product portfolio complements Stryker’s Neurovascular business and includes mechanical thrombectomy solutions for peripheral vascular diseases such as deep vein thrombosis and pulmonary embolism.
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Each year, VTE impacts up to 900,000 lives in the United States, with even more affected worldwide. Mechanical thrombectomy for VTE is an estimated $6 billion segment opportunity in the U.S. and is expected to grow 20%+ annually.
Inari products are sold in 30+ countries, with 150,000+ patients treated for VTE.
Analysts estimate Inari’s 2024 sales of around $603 million, reflecting 20%+ growth from 2023
People are at particularly high risk for this condition during or just after a hospitalization (with or without surgery), during cancer treatment, and during or just after pregnancy.
Inari provides solutions for VTE clot removal without the use of thrombolytic drugs.
“The acquisition of Inari expands Stryker’s portfolio to provide life-saving solutions to patients who suffer from peripheral vascular diseases,” said Kevin Lobo, Chair and CEO of Stryker. “These innovations elevate the standard of care for venous thromboembolism patients and will accelerate Stryker’s impact in endovascular procedures.”
The transaction will be funded with cash on hand and debt and is expected to close by the end of the first quarter of 2025.
Expected impacts to 2025 financial results will be discussed on Stryker’s upcoming fourth quarter 2024 earnings call scheduled for January 28, 2025.
Price Action: NARI stock is up 21% at $78.65, and SYK stock is down 1.76% at $355 during the premarket session at last check Tuesday.
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