Medtronic has secured an option to acquire coronary artery disease management company CathWorks for as much as $585 million plus milestones.
The deal sees Medtronic immediately invest $75 million in CathWorks and agree to co-promote its FFRangio System in the U.S., Europe and Japan. FFRangio delivers multi-vessel fractional flow reserve results without the use of an invasive pressure wire or hyperemic stimulus to evaluate the impact of the narrowing of coronary arteries.
Medtronic will have the option to acquire CathWorks if it meets certain milestones. CathWorks also has the right to compel Medtronic to complete the acquisition if it chooses not to exercise its option.
Medtronic made a minority investment in CathWorks in 2018, positioning it to monitor the progress of the Israeli startup. The U.S. Food and Drug Administration granted 510(k) clearance to FFRangio late in 2018. Later, CathWorks raised $60 million across series C and series D financing rounds and received approval and national reimbursement in Japan.
Having seen CathWorks’ progress, Medtronic has tightened its ties to the startup, upping its investment in the company and immediately stepping in to co-promote FFRangio in the markets where it is available commercially. The deal ends CathWorks’ search for a partner.