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5 More Private Medtech Companies to Watch

MedTech analysts continue to keep a watchful eye on the private sector. Needham & Co.'s Mike Matson just called attention to these five private medical device companies he finds interesting, adding to two previous lists the firm published earlier this year.

  • MedTech analysts continue to keep a watchful eye on the private sector. Needham & Co.'s Mike Matson just called attention to these five private medical device companies he finds interesting, adding to two previous lists the firm published earlier this year.

    Matson is not the only analyst in the industry keeping tabs on up and coming private companies. In January, Canaccord Genuity's Jason Mills highlighted 16 potentially disruptive medtech companies in the private sector.

  • Acutus Medical

    Location: Carlsbad, CA 

    Device Category: Cardiovascular

    Product: AcQMap System

    Regulatory Status: AcQMap received a CE mark in May 2016 and subsequently launched in Europe. FDA cleared AcQMap in October 2017 and Acutus launched in the United States in early 2018. 

    What Sets It Apart: The technology enables imaging, visualization, planning, and ablation all in one system. The platform uses ultrasound for high-resolution imaging and can collect over 115 thousand points per minute which can create a static view of a patient’s heart within minutes. Today, the traditional mapping technology uses voltage readings which is a “low-resolution” method of viewing cardiac activity when compared to dipole density mapping. The AcQMap system minimizes the effect of voltage with a dynamic view and a proprietary algorithm to interpret dipole density readings. By only viewing the dipole density readings, doctors can view a “high-resolution” map of cardiac activity.

    Recent Milestones: Data from the UNCOVER AF study was published in Circulation: Arrhythmia and Electrophysiology in July, after being released at the AF Symposium in Boston in January.

    Selected Investors: Deefield Capital, Pura Vida Investments, OrbiMed

    Competitors: Abbott, Boston Scientific, Johnson & Johnson, Medtronic

    Previous MD+DI Coverage: Acutus ‘Uncovers’ AcQMap’s Effectiveness with Trial Data

  • CrossRoads Extremity Systems

    Location: Memphis, TN

    Device Category: Orthopedics

    Products: Dynaforce Fusion System, Crosstie Hammertoe System, STRoPP System, etc.

    What Sets It Apart: Competitors’ clip instruments are typically made of plastic, are disposable, and difficult to reattach to the clip if necessary. Healthcare facilities buy instruments and implants from CrossRoads at prices that are similar to competing systems. However, rather than being thrown away after a procedure, the CrossRoads instruments can be packaged into an EcoPAK container and shipped back to CrossRoads to be cleaned, reconditioned, sterilized, and resold. CrossRoads provides rebates for each instrument that is sent back in order to provide an incentive for their return. Facilities also save money by not needing to send the instruments to their own sterilization processes.

    Selected Investors: Healthpoint Capital

    Competitors: Johnson & Johnson, Stryker, Wright Medical, Zimmer Biomet

    Previous MD+DI Coverage: Another Day, Another Medtech Deal

  • OrthAlign

    Location: Aliso Viejo, CA

    Device Category: Orthopedics

    Product: KneeAlign, HipAlign, UniAlign

    What Sets It Apart: Each system is disposable and has a list price of about $1,200, Matson noted, which is roughly in line with the disposable components which are required with conventional navigation or robotics procedures. But navigation and robotics systems also require capital purchases ($1 million or more in some cases) and include service contracts which typically require annual fees of about 10% of the list price. The analyst said OrthAlign management believes that robotics penetration will peak at 15%-20% of orthopedic procedures, which leaves the remaining 80%-85% as addressable cases for OrthAlign products.

    Selected Investors: KneeAlign, HipAlign, UniAlign, River Cities Capital, California Technology Ventures, Research Corporation Technologies

    Competitors: Globus Medical, Johnson & Johnson, Medtronic, Nuvasive, Smith & Nephew, Stryker

  • Veran Medical Technologies

    Location: St. Louis, MO

    Device Category: Bronchoscopy

    Product: SPiN System

    What Sets It Apart: Matson said Veran's management believes the SPiN platform is superior and differentiated from competing systems given its ability to: 1) build a better map (CT scan built on inspiration and expiration scan pre-operatively), 2) track moving nodules, 3) track sensor tipped instruments, and 4) convert from a endobronchial procedure to transthoracic percutaneous approach if needed.

    Selected Investors: BTG, Madryn Asset Management, River Cities Capital Funds, Versant Ventures

    Competitors: Johnson & Johnson, Medtronic

    Also Noteworthy: BTG made a $20 million investment in Veran in November 2018, which includes an option to acquire the company. Boston Scientific acquired BTG in August 2019 and Matson said he believes that BTG's option to acquire Veran may be transferred to Boston Scientific.

  • Vytronus

    Location: Sunnyvale, CA

    Device Category: Cardiovascular

    Product: Vytronus LICU System

    What Sets It Apart: The Vytronus LICU System allows for mapping and ablation using low-intensity collimated ultrasound (LICU) to treat atrial fibrillation (AF). The mapping system can collect 15,000 surface points and 15 million volume points (including cardiac motion) in less than three minutes by using ultrasound energy to create a 3D map of the left atrial anatomy. The ultrasound scan can also measure the thickness and other tissue properties which subsequently determines the dynamic ablation dosing to avoid over- and under-dosing. The doctor can manually plan a lesion path on the 3D map for ablation which is then executed without the need for tissue contact by the robotically controlled catheter tip. Matson noted that with each software upgrade, Vytronus has been able to take time out of the procedure. With the current software iteration, the average ablation takes about 30 minutes for each pair of veins but this could be shortened to about 10 minutes with future advanced versions of the system. The technology could also be used in other cardiovascular ablation procedures, Matson said.

    Selected Investors: Apple Tree Partners, New Enterprise Associates, BioStar Ventures, Windham Venture Partners

    Competitors: Abbott, Boston Scientific, Johnson & Johnson, Medtronic

    Previous MD+DI Coverage: 10 Medtech Startups on Fire in Q3 2016

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