Medical-device maker Stryker Corp. SYK-N is in advanced talks to acquire Inari Medical, which makes devices that treat patients with venous diseases, people familiar with the matter told Reuters on Monday.
If the talks are successful, a deal could be announced as soon as this week, the sources said, requesting anonymity as the discussions are confidential.
A deal for Inari, which has a market value of nearly $3 billion, would bolster Stryker’s efforts to build out its offerings to treat a condition called venous thromboembolism, where a blood clot forms in a vein, and other venous diseases.
Inari has been working with its advisers to explore a sale in recent weeks after fielding inbound acquisition interest from Stryker and other parties, the sources said, cautioning that another suitor could approach Inari and it is possible that no deal with any party is reached.
Stryker and Inari did not immediately respond to requests for comment.
Inari’s shares jumped nearly 6% on the news on Monday, before trading was halted. Before Monday’s gains, Inari’s shares, which have been trading in New York since 2020, had lost roughly 21% of their value over the past 12 months, outperforming a bigger decline in the S&P 500 Health Care Equipment index.
The potential deal comes amid a surge in demand for medical implant devices in recent years, as more people in the United States, particularly older adults, increasingly opt for surgical treatments that were previously deferred during the pandemic, leading to a boost in procedural volumes.
Irvine, California-based Inari, which was founded in 2013, is a maker of devices and systems that treat patients suffering from conditions including pulmonary embolism, deep vein thrombosis, and in-stent thrombosis, which is a complication that occurs when blood clots form in coronary stents.
The company’s shares, which have been trading in New York since 2020, have lost roughly 21% of their value over the past year, outperforming a bigger decline in the S&P 500 Health Care Equipment index.
For the quarter ended Sept. 30, Inari reported revenue growth of 21% and swung to an operating loss of $13.6 million, but forecast that it would break even by the end of the fourth quarter on robust demand for devices.
Kalamazoo, Michigan-based Stryker, which has a market value of about $138 billion, is a medical technology giant that makes devices for orthopedics, neurotechnology and spinal procedures.
In its most recent quarterly earnings, Stryker raised its annual profit forecast, banking on strong demand for its medical and surgical devices and robust procedural volumes.