Medtronic vs. Obesity

Medtronic (MDT Quote) 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." ...