Medtronic said it will exercise its option to acquire CathWorks, a privately held medical device company.
The intent to acquire CathWorks follows a 2022 strategic partnership with a co-promotion agreement for the CathWorks FFRangio System in the U.S., Europe and Japan, where it is commercially available.
The companies said using a combination of artificial intelligence (AI) and advanced computational science, the CathWorks FFRangio System provides a physiological assessment of the entire coronary tree directly from routine coronary angiograms (X-rays). They added that clinical evidence has demonstrated excellent diagnostic accuracy and promising clinical outcomes when compared with wire-based FFR.
"We are thrilled to have CathWorks officially become part of the Medtronic family," said Ramin Mousavi, president and chief executive officer of CathWorks. "Our successful co-promotion over the past three years has unlocked significant opportunities in the coronary physiology market through the expanded utilization of our innovative technology. With Medtronic's vast global footprint, FFRangio will continue to reach even more patients globally. Bringing Medtronic and CathWorks together will create a best-in-class organization focused on driving new standards of care to transform the cath lab."
The acquisition is valued at up to $585 million with potential undisclosed earn-out payments post-acquisition. It's pending clearance from the United States Federal Trade Commission (FTC). At the date of the acquisition closing, CathWorks will then become a part of Medtronic. Medtronic and CathWorks will continue to operate independently until the deal is closed.
