Medtronic buys medical device maker Transneuronix for $260m

Transneuronix is the creator of an implantable pacemaker-like device that delivers electrical pulses to the stomach.

The acquisition follows the formation of Medtronic’s new business unit, Medtronic Obesity Management.

“The acquisition of Transneuronix plays a key part in our strategy to deliver therapeutic solutions for the worldwide challenges of obesity,” said Bill Hawkins, Medtronic president. “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.”

The Transneuronix technology will be added to Medtronic’s own offerings, which include implantable biomedical devices and drug delivery systems.

Medtronic said it has worked with the company before, serving as a supplier of its implantable stimulation devices and programmers.

Under the agreement, Medtronic will make additional payments to Transneuronix shareholders if significant revenue objectives are achieved.