Yes, SPAC Mergers Still Exist in Medtech

The death of the special purpose acquisition corporation (SPAC) merger path has been greatly somewhat exaggerated.

Adagio Medical announced this week that it has entered into a business combination agreement with Arya Sciences Acquisition Corp. The catheter ablation technologies specialist is the second medical device company this month to announce that it would go public.

The combined company expects to receive about $42 million from equity and convertible notes at closing, which is expected in 2Q24. The combined company's common stock is expected to be listed on the Nasdaq Capital Market under the ticker symbol "ADGM".

"The business combination agreement and Adagio Medical's evolution to a public company is a natural next step in our relationship with Perceptive Advisors and other investor groups who have long supported Adagio Medical's innovations aimed to improve the efficacy of cardiac ablations," said Olav Bergheim, president, and CEO of Adagio Medical.  "We are expanding the clinical trials program for Adagio Medical's proprietary ultra-low temperature cryo ("ULTC") and pulsed-field cryoablation ("PFCA") technologies, with some of the pivotal data and new product launches expected in the first half of 2024. The business combination and related financings with ARYA will ensure that the company has sufficient capital to support its European commercialization of Adagio Medical's ULTC system for the treatment of ventricular tachycardias ("VT") and initiation of the US Pivotal VT IDE trial and to further advance our worldwide ULTC and PFCA clinical programs for atrial fibrillation."  

Related:Another Medtech SPAC Fades to Black

Tough times for going public?

Adaigo is the second company this month to announce it would go public. Fractyl, a company focused on treating type 2 diabetes and obesity, announced its plan to raise $110 million in an IPO.

Medical device companies seldom took the public route in 2023. SPACs, in particular, were few and far between. In May of 2023, Avertix announced a merger with Bios Acquisition Corp.

Other SPACs in 2023, include Cognos Therapeutics, an implantable drug delivery specialist, merging with Nocturne Acquisition Corp. and Envoy Medical completing a business combination with Anzu.