Dive Brief:
- Cook Medical has sold a portfolio of medical devices for ear, nose and throat procedures to C2Dx for an undisclosed amount.
- The transaction, which the companies disclosed Wednesday, completes Cook’s divestiture of its otolaryngology, head and neck surgery (OHNS) product lines. The deal does not include Cook employees, facilities and manufacturing equipment.
- C2Dx announced the deal, which follows its acquisitions of Hemostatix and devices from Stryker, alongside news that it has partnered with the private equity firm Shore Capital Partners.
Dive Insight:
Cook, a provider of devices for minimally invasive procedures, has made a series of changes in recent years as part of its strategic plan. The private company agreed to sell its reproductive health business to Coopercompanies in 2022, only for the $875 million deal to collapse amid regulatory scrutiny. Cook later sold a smaller slice of its portfolio to Cooper for $300 million.
In between those deals, Cook laid off 500 people in response to a “significant change to our customers, our supply chain and the way we work.” The company framed the layoffs as part of its “five-year vision and strategic plan.”
Cook enacted another element of the plan this week by selling some products to C2Dx. The transaction includes devices used in procedures to treat obstructive salivary disease, chronic ear disorders, nasal/sinus and skull base reconstruction, and dysphagia, Shore Capital said in a statement.
D.J. Sirota, senior vice president of Cook’s medsurg division, said in a statement that the “OHNS product lines would be better served by an organization that wants to grow in that space.” Cook said the deal covers its remaining OHNS product lines.
For C2Dx, the deal is the latest in a string of product acquisitions. Since starting out in 2019, the medtech company, which was formerly called Critical Care Diagnostics, has acquired the STIC intra-compartmental pressure monitor and T/Pump localized temperature therapy system from Stryker. It also purchased Hemostatix, which developed a thermal scalpel system.
C2Dx was founded by its CEO Kevin McLeod, who previously worked at Stryker and launched the Michigan Medical Device Accelerator and the growth capital firm Plymouth Growth Partner. Supported by Shore Capital, the company is now pursuing more partnerships and business development deals.