RiverVest, with offices in St. Louis and Cleveland, has stuck it out in the field of early-stage life science investing when others have fled, unwilling to invest in medtech companies that have high regulatory hurdles. The firm’s model of scoping out opportunities, and then founding and incubating companies around interesting technologies has served it and the medtech world well. In 2012 and 2013, RiverVest saw four portfolio companies make exits, the highest of any other venture firm that invests in medical devices, according to PrivCo, a provider of financial intelligence on private companies.
Here are some of the notable exits RiverVest has had in the medical device realm in recent years:
- In 2011, Lutonix Inc., which developed drug-coated angioplasty balloons, was sold to C.R. Bard for $225 million upfront and an additional $100 million when it achieves regulatory milestones.
- In 2012, Cameron Health, which developed a novel subcutaneous ICD with no leads in the heart, sold to Boston Scientific for an upfront payment of $150 million, plus an additional potential $150 million payment upon FDA approval and up to $1.050 billion more if it achieved specific revenue-based milestones over a six-year period following FDA approval.
- In 2013, IDEV Technologies, which developed a stent system to treat peripheral artery disease, was sold to Abbott Laboratories for $310 million net of cash and debt.
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|Meet more agents of change in medtech at the MD&M East tradeshow and conference in New York City June 9–12, 2014.|
[image courtesy of SHEELAMOHAN/FREEDIGITALPHOTOS.NET]