Press Release July 13, 2022

CathWorks Announces Acquisition Option Agreement and Co-Promotion Agreement with Medtronic

The Life Sciences team advised CathWorks in its acquisition option agreement and co-promotion agreement with Medtronic (NYSE: MDT).

Under the acquisition option agreement, Medtronic will have the option to acquire CathWorks once certain undisclosed milestone events are met. If the milestone events are met and Medtronic chooses not to exercise its option, CathWorks will also have the right to compel Medtronic to acquire the company. The acquisition option agreement will expire in July 2027; the purchase price for the acquisition will be up to $585 million plus potential post-closing earn-out payments.

Under the co-promotion arrangement, Medtronic will co-promote CathWorks’ FFRangio® System with CathWorks in the U.S., Europe, and Japan. Traditional fractional flow reserve (FFR) is an important diagnostic technique that evaluates the physiologic impact of coronary artery stenosis, but has been underutilized because it requires invasive measurements with wires and stimulation with hyperemic agents. In contrast to traditional FFR, the FFRangio System combines artificial intelligence and advanced computational science to obtain quick and reliable FFR values from routine angiograms (X-rays), eliminating the need for drug stimulation and invasive pressure wires and providing physicians with quick and reliable intraprocedural FFR values for the entire coronary tree.

In connection with these transactions, Medtronic will also invest up to $75 million in CathWorks.

CathWorks is a leader in digital health innovations that can improve the lives of patients globally.

Medtronic is a leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions.

The Goodwin team was led by Richard Hoffman and Yasin Akbari and included Chris Denn, EA Weeks, and Dan Hughes (Life Sciences Corporate and Intellectual Property), Matt Wetzel, Julie Tibbets, Steve Tjoe, and Heath Ingram (FDA & Healthcare), Dan Karelitz and Benjamin Gossels (Tax), Karl Dragosz (Privacy), Malhar Naik and Emilie Pfister (ERISA & Executive Compensation), Rich Matheny, Jason Wilcox, and Amy Josselyn (Global Trade), Patty Mets (Private Equity), Chris Steinroeder (Debt Finance) and Paul Jin (Antitrust).

For more details, read the press release and article in MassDevice.