Analysts: Stryker might not be the only bidder for Novadaq

Stryker (NYSE:SYK) might not be the only firm in the running for Novadaq Technologies (TSE:NVDQ), according to analysts responding to Stryker’s $701 million bid for the Canadian fluorescence imaging company. Mississauga, Ontario-based Novadaq yesterday agreed to the $11.75-per-share bid, which offers a 95.8% premium on NVDQ’s $6 closing price June 16. That agreement – and the high premium – was likely the result of a bidding process, according to Leerink Partners analysts Richard Newitter and Ravi Misra. “We believe there was a competitive process for the asset, and the deal price likely reflects this on some level,” Newitter and Misra wrote yesterday in a note to investors. And Canaccord Genuity analyst Jason Mills said the terms of the deal (a relatively low $21 million termination fee and a “right to match” provision) indicate that other medtech players like Medtronic (NYSE:MDT), Johnson & Johnson (NYSE:JNJ) or Intuitive Surgical (NSDQ:ISRG) could emerge as Novadaq suitors. “While competitive bids are usually low probability in medtech, we think the potential is a bit higher in this case, as we believe the NVDQ asset would fit very well strategically within any of the aforementioned companies,” Mills wrote. Newitter and Misra noted that Intuitive worked with Novadaq to integrate the Spy technology into its Firefly imaging system. “This collaboration runs through 2021 and we do not expect SYK’s acquis...
Source: Mass Device - Category: Medical Devices Authors: Tags: Imaging Mergers & Acquisitions Wall Street Beat Intuitive Surgical Johnson & Johnson Medtronic Novadaq Stryker Source Type: news