1. Medtech Insight
  2. >>Business
  3. >>Deals

Option-To-Acquire In Medical Device Deals Rarely Gets Exercised

For a device start-up, an option to acquire presents a clear path to liquidity, but there are drawbacks. An analysis of deals in Elsevier’s Strategic Transactions suggests the importance of such options to the overall merger and acquisition ecosystem might be overblown.

The dearth of early-stage capital available for medical device start-ups has created both a need and an opportunity for large medical device companies with corporate venturing programs. (See Also see "Corporate Venture Eyes The Early Stage" - Scrip, 13 September, 2012..) The capital is welcome and necessary. But such investments historically have come with a few potential strings, the most prominent being the pursuit of an option to acquire a start-up.

Option-to-acquire deals are not new – in fact many times they are clauses to existing agreements that are never publicly disclosed – and they are often a way for a...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Medtech Insight for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Deals

23andMe Purchase Will Let Regeneron Scale Drug Development

 
• By Alaric DeArment

The consumer genomics firm will operate as a subsidiary, while Regeneron plans to leverage its database for drug discovery and trial design efforts.

Deals Shaping The Medtech And Diagnostics Industries, March 2025

 
• By Medtech Insight Team

An interactive look at medtech and diagnostics deals made during March 2025. Data courtesy of Biomedtracker.

Roar Of Eargo-hearX Merger Echoes Through US OTC Hearing Aid Market

 
• By Malcolm Spicer

The firms recently announced they will operate as combined company LXE Hearing marketing Eargo’s namesake line and hearX’s Lexie brands. Eargo majority owner Patient Square Capital added $100m to its investment.

Anglonordic 25: Women’s Health Needs Therapeutic Success To Encourage Wider Investment

 
• By Natasha Barrow

Health tech is at the forefront of the women's health sector, securing 38% of venture capital in 2024. However, panelists at the Anglonordic Life Science Conference held 3 April asserted that a successful therapeutic breakthrough is key to gaining investor confidence and accelerating venture capital.

More from Business