Neovasc, one of the smaller players in the transcatheter mitral valve replacement (TMVR) space, has seen a huge decrease in revenues, according to results posted in its most recently recorded earnings quarter. The Vancouver-based company said revenues declined by 77% from $339, 922 for the first quarter of 2018 compared to revenues of $1.5 million from the same period in 2017.
"Despite a challenging period for our shareholders, we are encouraged by our improved financial position through the receipt of $12.3 million in proceeds from investor-initiated exercises of Series C warrants that were issued during our November 2017 public offering," Fred Colen, Neovasc's CEO, said in a release. "This additional capital provides us with increased runway to support our clinical and operating activities into early 2019 at our current cash burn rate, including achieving further clinical milestones for Tiara and increasing commercial sales of Reducer in Europe."
The Tiara TMVR system is delivered through the apex of the heart to replace the mitral valve while preserving the integrity of the surrounding structures of the heart.
“We believe that Tiara is increasingly being recognized as one of the leading devices exploring this new treatment option for patients who are unable or unsuited to receive an open heart surgical valve replacement,” said Colen, according to a release from Seeking Alpha. “We are competing with clipping repair procedures and believe Tiara to be a better treatment option for many functional mitral valve regurgitation patients treated with clipping repair procedures today. As a result, we are experiencing an increasing amount of interest from new clinical investigator sites for additional future enrollment in our ongoing European Tiara II CE Mark study.”
The Summer of TMVR Consolidation
It has long been believed that TMVR could represent the next big multi-billion medtech opportunity. In 2015,large medtech companies went through an acquisition spree to pick up smaller TMVR firms. Edwards Lifesciences led the charge when it acquired CardiAQ Valve Technologies, in the summer of 2015.
Abbott Laboratories doubled its chances in the market it picked up not one, but two TMVR companies – Roseville, MN-based Tendyne and San Jose, CA-based Cephea Valve Technologies. Dublin-based Medtronic soon followed Edwards and Abbott with an acquisition of its own and announced it would pick up TMVR specialist Twelve in a transaction worth up to $458 million.
About a year ago, LivaNova completed its acquisition of TMVR company, Caisson Interventional. LivaNova had been investing in the Maple Grove, MN-based company since 2012.