This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Medtronic vs. Obesity

Medtronic (MDT - Get Report) agreed to acquire Transneuronix, a privately held medical device company focused on the treatment of obesity, for an initial cost of about $260 million, and left open the possibility of additional payments if certain revenue goals are met.

Transneuronix treats obesity by stimulating the stomach with an implantable pacemaker-like device that delivers electrical pulses. Medtronic, a medical-device maker based in Minneapolis, expects to close the transaction within the week.

The acquisition follows Medtronic's recent plan to form a new business unit called Medtronic Obesity Management. "The acquisition of Transneuronix plays a key part in our strategy to deliver therapeutic solutions for the worldwide challenges of obesity," the company said in a press release. "Because obesity is linked to so many associated health problems, there is a great sense of urgency to find successful long-term treatment options for these patients."

Additionally, Medtronic is starting a feasibility trial to test the safety and efficacy of gastric electrical stimulation for the treatment of obesity in patients with Type 2 diabetes. The first implant took place June 7 at Scripps Memorial Hospital La Jolla in San Diego.

The Appetite Suppression Induced by Stimulation Trial (ASSIST) is designed to determine whether Type 2 diabetes patients with concomitant obesity who receive gastric electrical stimulation have a minimum mean excess weight loss greater than a control group. The trial will evaluate excess weight loss and glycemic control.

Shares of Medtronic were down 31 cents to $52.59.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
MDT $77.14 0.85%
AAPL $127.60 2.28%
FB $83.09 2.87%
GOOG $535.38 2.16%
TSLA $205.27 -0.74%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs