Often referenced as a powerful example of Technion graduate ingenuity, Given Imaging – the Israeli start-up that introduced the pill that a patient can swallow for real-time, non-invasive examination and diagnosis, is being acquired for $860 million, it was announced yesterday.
Covidien Announces Definitive Agreement to Acquire Given Imaging
DUBLIN, Ireland & YOQNEAM, Israel–(BUSINESS WIRE)–Dec. 8, 2013– Covidien plc (NYSE: COV) and Given Imaging Ltd. (Nasdaq: GIVN) today announced a definitive agreement under which Covidien will acquire all of the outstanding shares of Given Imagingfor $30.00 per share in cash, for a total of approximately $860 million, net of cash and investments acquired. This transaction provides Covidien additional scale and scope to serve the multibillion dollar global gastrointestinal (GI) market and supports the Company’s strategy to comprehensively address key global specialties and procedures.
Given Imaging provides one of the broadest technology platforms for visualizing, diagnosing and monitoring the digestive system, including its flagship PillCam®, an innovative swallowed capsule endoscope.
“We believe GI is one of the most attractive specialty procedure areas. Acquiring Given will enable Covidien to significantly expand its presence in a $3 billion GI market,” said Bryan Hanson, Group President, Medical Devices & U.S., Covidien. “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.”
“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,” said Homi Shamir, President and CEO, Given Imaging Ltd. “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.”
Technion Alumni and the Pill that delivers real-time images inside your body
The Pillcam was developed by Technion graduate Dr Gavriel Iddan, and it makes digestive system examinations as simple as taking a pill.
The camera has a tiny light source, miniaturised transmitters and power cells, and it travels through the body in a disposable capsule. It relays pictures to a data recorder, worn on a belt around the waist, at the rate of two frames a second for about eight hours. Doctors then download information from the recorder to a computer to get a close-up of a patient’s gastro-intestinal tract without the need for a hospital stay. The capsule passes naturally through the body and is discarded.
To give its formal name, capsule endoscopy is used to examine parts of the gastrointestinal tract that cannot be seen with other types of endoscopy. It makes it faster and easier to diagnose stomach and bowel cancer, as well as ulcers and inflammatory bowel disease.
The Pillcam was recently shown to Chinese philanthropist Li ka Shing on his visit to Technion in September 2013.