Shares of Intersect ENT Inc (NASDAQ:XENT), a manufacturer of sinus implants for delivering targeted therapy to the ear, nose and throat, are skyrocketing to their best level since mid-March following a buyout rumor.

What Happened: Large-cap medical device manufacturer Medtronic PLC (NYSE:MDT) has tabled an offer to buy Intersect ENT, Bloomberg reported, quoting people with the knowledge of the matter.

Intersect ENT's board is reportedly reviewing the offer with its advisers.

Menlo Park, California-based Intersect ENT reported a 26% decline in first-quarter revenue in mid-May, blaming the predicament on the impact of hospitals suspending elective surgical procedures and reduced ENT office visits tied to the COVID-19 pandemic.

Intersect ENT Not New To M&A Chatter: Ahead of the onset of the COVID-19 pandemic, there were rumors that the company was being pursued by suitors, including Medtronic.

"As we've written multiple times in the past, MDT has often been named as one of several companies for whom a XENT could make strategic sense." SVB Leerink analyst Richard Newitter said in a note, reacting to the recent M&A speculation.

Other potential suitors include Smith & Nephew plc (NYSE:SNN), Stryker Corporation (NYSE:SYK) and Johnson & Johnson (NYSE:JNJ), the analyst said.

XENT Price Action: At last check, Intersect ENT shares were rallying 28.08% to $17.79, while Medtronic was down 0.71% at $91.04.

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