Medtronic Lays Groundwork for Future CathWorks Deal
Medtronic has laid the groundwork to potentially acquire CathWorks, an Israeli company set on transforming the way coronary artery disease (CAD) is diagnosed and treated. CathWorks has developed the FFRangio System, a non-invasive diagnostic tool turns routine angiogram images into color-coded 3D renderings of blood flow in the heart's arteries. Physicians can then use the images to determine whether a stent is needed. Through a new agreement, Medtronic will invest up to $75 million and help promote CathWorks' FFRangio System in the United States, Europe, and Japan, where the device is commercially available. A separate agreement gives Medtronic the option to acquire the Kefar Sava, Israel-based company once certain undisclosed milestones are met. CathWorks will also have the right to compel Medtronic to acquire it if Medtronic chooses not to exercise its option. The acquisition option agreement will expire in July 2027 and would be valued at up to $585 million plus potential undisclosed earn-out payments after the deal is done.
Abbott Wins Breakthrough Device Designation
Abbott Laboratories has won breakthrough device designation for its deep brain stimulation (DBS) system to be investigated in the use of treatment-resistant depression (TRD). The Abbott Park, IL-based company’s system has traditionally been used to help control symptoms for people with movement disorders, such as Parkinson’s disease and essential tremor.
Bioventus Completes CartiHeal Deal
After nixing its original financing plans and amending the payment structure of the deal, Bioventus has completed its acquisition of CartiHeal. FDA approved CartiHeal's Agili-C implant in March, through the breakthrough device designation pathway. It is indicated to treat International Cartilage Repair Society grade III or above knee–joint surface lesions, with a total treatable area of 1-7 cm for patients without severe osteoarthritis (Kellgren-Lawrence grade 0-3).
And in case you missed our last Medtech in a Minute report...
The Shocking End to Theranos Trial Drama
In a shocking end to the Theranos trial drama, a jury found ex-COO Ramesh "Sunny" Balwani guilty on all 12 criminal charges against him. In January, Elizabeth Holmes, Balwani's ex-girlfriend and the founder/CEO of Theranos, was convicted of four charges of defrauding investors.
Medtech SPACs are Stayin' Alive
Just when we thought the 2021 trend of medtech special purpose acquisition corporation (SPAC) mergers was dead, two startups in recent weeks have proved us wrong. Last year, companies began using SPAC mergers as an alternative method of going public. This year, we've seen several companies back out of SPAC deals, citing challenging market conditions. Now, Orchestra BioMed and Human Longevity have each announced SPAC mergers, suggesting a possible return to the SPAC trend we saw in 2021.
Should Women Delete Their Period Trackers?
Period tracker and fertility apps landed in the crosshairs after the Supreme Court overturned Roe v. Wade, with some experts urging women to delete all traces of digital menstural tracking from their devices. Popular period app developers such as Flo, however, are responding to privacy concerns by beefing up security around their apps and adding annonymous mode options for users to continue tracking their cycle annonomously.