Late on Sunday, Medical device maker Medtronic, Inc. (MDT) announced it has acquired privately-held disease management and patient monitoring company Cardiocom LLC for $200 million.
The all-cash deal marks MDT’s first foray into the disease management field, and is likely aimed at assuaging investor fears over how new health care policies could negatively affect device makers. Cardiocom works with hospitals and insurers to help limit the high costs of treating patients with chronic ailments.
Medtronic CEO Omar Ishrak commented, “With broad healthcare reform initiatives focused on growing economic challenges, healthcare systems in every region of the world are striving to continuously improve outcomes, increase access, save cost, and improve the efficiency of healthcare delivery. The acquisition of Cardiocom is one step we are taking toward providing a combination of products and solutions that can help address those challenges.”
Medtronic shares were unchanged in pre-market trading Monday. The stock has risen nearly 35% year-to-date.