|Bayer CEO Marijn Dekkers|
The deal: Bayer AG acquires Conceptus
The price tag: $1.1 billion
Why it matters: The sizable, midyear deal reflects the power medical devices can have in boosting drug company fortunes. Bayer, the German maker of drugs and chemicals, went for Conceptus to gain access to Essure, the California company's permanent birth control device implant that has already been used by more than 750,000 women globally since its FDA approval in 2002. Essure, which consists of two flexible metal fiber coil inserts placed in a woman's fallopian tubes through the cervix, is implanted in a 10-minute procedure. Over three months, it forms a natural barrier in the fallopian tubes. The device will help Bayer boost its women's health products, but it is also a solid cash cow in the face of fluctuating or declining birth control drug sales in the space. Essure is already covered in the U.S. by most public and private insurance plans and will help Bayer remain strong, and more stable, in the space in the months ahead.
Bayer closes $1.1B birth control device deal
Bayer to grab birth control device maker Conceptus for $1.1B