Medtronic has formed a strategic partnership with Israel-based cardiovascular disease-focused medical technology company CathWorks.
According to the agreement, Medtronic will make an investment of up to $75m and immediately begin co-promotion of CathWorks’ FFRangio System in the US, Europe and Japan, where it is currently available commercially.
The two companies also signed a separate agreement under which Medtronic will have the option to acquire CathWorks by July 2027, once certain undisclosed milestones are met.
The deal could value up to $585m, excluding potential undisclosed earn-out payments following the completion of the acquisition.
Additionally, CathWorks has the right to compel Medtronic on the deal, if the latter chooses not to exercise this option.
Notably, Medtronic has held a minority stake in CathWorks since 2018.
CathWorks president and CEO Ramin Mousavi said: “CathWorks has been looking for the right partner to help us expand the reach of the FFRangio system globally.
“Medtronic not only brings the strength of its commercial team to CathWorks, but a reputation of investing and defining new opportunities to revolutionise care. I am excited about the possibilities ahead as we partner with Medtronic to expand the use of our technology to the US, Japan and Europe.”
The FFRangio System is developed as an alternative to the conventional fractional flow reserve (FFR) diagnostic technique.
The system leverages artificial intelligence (AI) and advanced computational science to obtain quick and reliable FFR values from routine angiograms (X-rays), helping healthcare professionals with the decision-making process for coronary artery disease.
Unlike conventional FFR, it does not involve the use of drug stimulation and invasive pressure wires.
Medtronic Cardiovascular Portfolio’s coronary and renal denervation business senior vice-president and president Jason Weidman said: “We are excited to partner with CathWorks to offer the FFRangio system to our customers.
“We believe strongly in the potential of the technology and are committed to strengthening our relationship with CathWorks to provide new, innovative technologies and solutions from diagnosis to treatment.”
In May, Medtronic concluded the acquisition of health care equipment company Intersect ENT.