ITMR Stock: Why It Significantly Increased Today

By Amit Chowdhry ● September 13, 2021
  • The stock price of Itamar Medical (NASDAQ: ITMR) increased by over 40% pre-market. This is why it happened.

The stock price of Itamar Medical (NASDAQ: ITMR) – a medical device and digital health company focused on the integration of sleep apnea diagnosis into the cardiac patient care pathway – increased by over 40% pre-market. Investors are responding to ZOLL Medical Corporation (an Asahi Kasei company that manufactures medical devices and related software solutions) and Itamar Medical Ltd. today announcing that the two companies signed a definitive agreement under which ZOLL Medical will acquire all outstanding ordinary shares of Itamar Medical for a total value of approximately $538 million.

Itamar Medical focuses on the development and commercialization of non-invasive medical devices and solutions to aid in the diagnosis of respiratory sleep disorders. And the company pioneered the WatchPAT Home Sleep Apnea Device, an innovative sleep apnea diagnosis program for patients and healthcare professionals. The WatchPAT device is FDA-cleared and gained recognition as a safe and effective method for home-based testing for sleep apnea.

ZOLL Medical has a long history in improving patients’ lives with innovative technologies, including multiple monitoring solutions that aid in the diagnosis and management of cardiac patients. And in April 2021, ZOLL Medical acquired Respicardia, maker of the remedē System – the only implantable device approved by the FDA to treat moderate to severe CSA in adult patients.

Under the terms of the deal — which has been unanimously approved by the boards of directors of ZOLL Medical and Itamar — ZOLL Medical will acquire all outstanding ordinary shares of Itamar Medical for $31 per American Depository Share (ADS), or $1.03 (equivalent to approximately NIS 3.31) per ordinary share, in cash. The offer of $31 per ADS in cash represents a premium of 50.2% over the price of Itamar Medical’s ADS on the Nasdaq Stock Market on September 10, 2021.

ZOLL Medical’s acquisition of Itamar Medical is subject to approval by the shareholders of Itamar Medical, regulatory approvals, and other customary closing conditions. And assuming typical regulatory and shareholder approval timeframes, the parties currently expect the transaction to close by the end of 2021.

KEY QUOTES:

“ZOLL Medical is committed to improving outcomes for underserved patients suffering from serious cardiopulmonary conditions. It is currently estimated that 60% of cardiovascular patients suffer from some form of sleep apnea, and the majority of these patients go undiagnosed.2 The combination of ZOLL Medical and Itamar Medical will help more patients receive diagnosis and treatment for sleep-disordered breathing. We look forward to helping strengthen the collaboration between the worlds of cardiology and sleep medicine.”

— Jon Rennert, CEO of ZOLL Medical

“We are excited to join forces with ZOLL Medical, a leader in addressing the needs of cardiologists and their patients. The integration of Itamar’s WatchPAT technology and Digital Health solution for sleep apnea with ZOLL Medical’s commercial footprint will accelerate our mission of advancing home sleep medicine to benefit the population of undiagnosed and untreated patients.” 

— Gilad Glick, President and Chief Executive Officer of Itamar Medical

“We believe the transaction is in the best interest of Itamar’s various stakeholders.” 

— Shy Basson, Itamar’s Chief Financial Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.