M.I.Tech

M.I.TECH is one of the largest pharmaceutical companies in South Korea, producing a wide range of high-quality, safe, standards-built medical devices for endoscopic and urological procedures.

History

2023: Authorities in several countries ban Boston Scientific from buying M.I.TECH

On May 24, 2023, the US Federal Trade Commission (FTC) announced that a deal to buy South Korean stent maker M.I.Tech from Boston Scientific would not take place.

Boston Scientific entered into an agreement to buy a 64% stake in M.I.Tech in June 2022. The transaction worth approximately $230 million was planned to be closed in the second half of the same year, subject to the standard conditions for the transfer of assets. However, later the completion of the merger was postponed to the second quarter of 2023 due to a number of difficulties. But it was not possible to withstand these deadlines either: the parties could not obtain the necessary permits from the regulatory structures. As a result, as stated in the official notification of the FTC, the companies terminated the previously reached agreement.

No deal to buy South Korean stent maker M.I.Tech from Boston Scientific

Our agreement to buy a controlling stake in M.I.Tech from Synergy Innovation Co., Ltd required global regulatory approvals that we were unable to obtain in some countries, said Kate Haranis, a spokesman for Boston Scientific.

An antitrust investigation into the planned deal was initiated at the FTC's filing, it said. As a result, the department and foreign regulators concluded that the merger could negatively affect the market situation. The FTC is working to ensure competition as well as protect consumer interests, the statement noted. It is also known that Boston Scientific has signed a new agreement to buy a 9.9% stake in M.I.Tech, but this deal also requires approval from relevant departments. Gaining a stake in M.I.Tech is expected to help Boston Scientific strengthen its position in the stent market, including in Japan, where the company has been offering related products since 2015.^[1]

2022: Boston Scientific announces purchase of M.I.TECH

In mid-June 2022, Boston Scientific announced an agreement to buy a controlling stake (64%) in M.I.TECH. The deal is valued at $230 million.

Based in South Korea, M.I.TECH manufactures medical devices for endoscopic and urological procedures. The company also developed Hanarostent technology, a family of conformal, non-vascular, self-expanding metal stents that Boston Scientific has distributed in Japan since 2015.

Boston Scientific bought a South Korean manufacturer of devices for endoscopic procedures

Non-vascular gastrointestinal stents from M.I.TECH and the airways are used to eliminate blockage or stricture in various areas of the patient's anatomy, including the biliary tract, pancreatic ducts, esophagus, colon, and duodenum. In many cases, stent placement is minimally invasive and may contribute to faster patient recovery compared to surgery. Hanarostent's technology features a unique hook-and-cross nitinol design that provides a natural and flexible fit in the patient's anatomical space, as well as flared ends to prevent stent migration.

{{quote 'M.I.TECH is an innovator in the development of neovascular stents, offering products that complement our existing stent portfolio, including Axios' differentiated stent and advanced electrocauteria delivery system, and Agile's flexible and conformal esophageal stent system. We are committed to investing in technologies that improve patient care worldwide and look forward to working more closely with M.I.TECH to expand their international footprint, "said MedSurg and Asia-Pacific Boston Scientific Group Executive Vice President and President Art Butcher. }} Boston Scientific expects to complete the deal in the second half of 2022, subject to the usual closing conditions. The impact on GAAP earnings per share and adjusted earnings per share in 2022 is expected to be insignificant.^[2]

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