Israeli Pillcam manufacturer Given Imaging has announced that it is ending its previously announced exploration of a possible sale or merger transaction as part of its evaluation of strategic options in order to maximize growth and enhance shareholder value.
Weird that these remote, swallowable cameras and image gatherers have cropped up twice in recent days, but probably less so when one considers their potential place in therapeutic approaches to the gastrointestinal tract. Given Imaging, being one of the pioneers in the field of so-called capsule endoscopy offers a broad product portfolio including PillCam® capsule endoscope for the small bowel, Oesophagus and colon. It has been quite acquisitive in recent months, as recently as last October getting its hands on SmartPill Corporation for a reported $6M as we reported here.
So it all felt a little like jumping the gun when the hitherto very active and demonstrably ambitious Israeli outfit Given Imaging decided to explore a sale. That’s what shareholders thought too presumably, the announcement resulting in a drop in the stock price.
Anyway, after what it describes as a “thorough exploration”, the company has concluded that the continued execution of the Company’s operating plan, supplemented by additional acquisitions and alliances, provides the best opportunity at this time to enhance value for all of the Company’s shareholders. The share price had recovered at the time of writing.
Source: Given Imaging Ltd., Marketwire