Following a public comment period, the Federal Trade Commission has approved a final order settling charges that Medtronic, Inc.’s acquisition of Intersect ENT, Inc. would have led to higher prices and reduced innovation in the markets for ENT navigation systems and balloon sinus dilation products.
Under the terms of the final settlement, Medtronic must divest Intersect subsidiary Fiagon – which makes ear, nose, and throat navigation systems and balloon sinus dilation products – to Hemostasis, LLC.
First announced in May 2022, the complaint alleged that markets for ear, nose, and throat navigation systems and balloon sinus dilation products are already concentrated. The divestiture will prevent further concentration that would ultimately harm consumers, according to the FTC.
According to the final order, divestiture buyer Hemostasis must obtain prior approval for three years before transferring any of the divested assets to any buyer, and for seven additional years before transferring any divested assets to a buyer that manufactures and sells ENT navigation systems or balloon sinus dilation products.
The Commission vote to approve the final order was 5-0.