Medtronic Plans to Acquire SPR Therapeutics for $650 Million
Medtronic announced its intent to acquire SPR Therapeutics, a privately held medical technology company and a recognized leader in temporary, percutaneous peripheral nerve stimulation, or PNS, therapies for chronic pain management. The transaction consists of an upfront cash payment of approximately $650M for all the outstanding equity in SPR. The acquisition continues Medtronic's momentum in driving strategic deals that further build out the company's core franchises. Drawing on Medtronic's 50 years of neuromodulation leadership, including the industry's broadest pain therapy portfolio1, this planned acquisition will increase Medtronic's ability to reach and support more people with complementary, minimally invasive pain relief options earlier in their care continuum. This transaction is subject to customary closing conditions and regulatory approvals. The anticipated close date will fall within the first half of Medtronic's Fiscal Year 2027, which officially began on April 25. Until closing, Medtronic and SPR Therapeutics will continue to operate as separate and independent companies.
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- Healthcare Sector Stability: Johnson & Johnson and Medtronic also demonstrate strong performance in the healthcare sector, offering dividend yields of 2.3% and 3.6%, indicating that the inelastic demand for medical care allows these companies to remain profitable amid economic fluctuations.
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- Coca-Cola and Procter & Gamble: Both companies, recognized as 'Dividend Kings', offer dividend yields of 2.6% and 2.9% respectively, with their price-to-earnings ratios currently below their five-year averages, indicating that their stock prices are reasonably valued and suitable for income-seeking investors.
- Strong Healthcare Options: Johnson & Johnson and Medtronic also demonstrate resilience in the healthcare sector, with dividend yields of 2.3% and 3.6% respectively; while J&J's P/E is above its five-year average, its diversified operations provide investors with effective risk management.
- Medtronic's Growth Potential: Medtronic achieved its highest revenue growth rate in ten quarters during Q3 of fiscal 2026, and although the company is undergoing restructuring to enhance innovation, its attractive dividend yield compensates investors for their patience during this transition.
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- Stock Price Fluctuations: At Friday's close, TT's stock fell approximately 0.1%, while MDT's dropped about 2.4%, reflecting differing market sentiments and expectations for the two companies.
- Coverage Reinstatement: On May 21, Goldman Sachs reinstated coverage of Medtronic (NYSE:MDT) with a Neutral rating and an $84 price target, indicating a balanced risk/reward profile in the current market environment.
- Market Positioning: Goldman noted that Medtronic's stock is priced about 10% below larger MedTech peers, reflecting challenges in its organic revenue and earnings growth compared to competitors, highlighting the company's competitive hurdles.
- Revenue Growth Expectations: Goldman projects that Medtronic's organic revenue will grow in line with the long-term medtech sector average of around 5%, but due to a less favorable product mix for margin expansion, earnings growth is expected to be more modest, necessitating stronger top-line growth for bottom-line improvement.
- Rating History: Goldman initially rated Medtronic as Sell in May 2024 with an $83 target, later upgrading to Neutral in November 2025 with a $111 target, indicating a reassessment of the company's outlook.











