Deals and Financings

This week, the US FDA's proposed final rule on lab-developed tests cleared another hurdle on the path to release; Zimmer Biomet announced that its ROSA surgical robot had been used in shoulder replacement surgery for the first time; and a virtual menopause clinic closed out a $60M fundraising round.

Firm operating in London, India and United Arab Emirates says its “Ultra Factory” will open in Indiana within the next six months with end-to-end production based on its operational facility in India.

Two Chairs, which uses algorithms to match the right therapists with patients, secured $72m in investment to expand its business.

J&J’s acquisition of IVL device maker Shockwave Medical for $13.1bn sets J&J’s medtech arm solidly in a leadership position in multiple cardiovascular markets.

This week, Abbott, Click and Otsuka, Prenosis won the FDA nod respectively for an in vitro diagnostic to evaluate patients for concussion, the first prescription digital therapeutic to treat major depressive disorder and a software to predict sepsis. Also on the regulatory front, the FDA will now take 513(g)s forms via its eSTAR framework. In Europe, the debate of what personal information can be shared continues. 

Yosemite, an oncology-focused VC company, founded by Reed Jobs, partnered with the American Cancer Society to launch a $13.2m grant program to fund cancer projects, including using AI for drug discovery and research in immuno-oncology and cell therapy approaches.

Medtech Insight's News We're Watching highlights some recent business and R&D developments you may have missed. This week, GE Healthcare and Biofourmis announced a deal to collaborate on virtual care; Cleerly touts a new CPT code for its Ischemia cardiac diagnostic software; Boston Scientific announced how it plans to pay for Axonics; a Wells Fargo survey suggests the market for transcatheter tricuspid valve repair and replacement will grow faster than previously imagined; Virtual Incision earns FDA de novo authorization for its MIRA miniaturized surgical system for colectomy procedures; and MMI and Fabric announce major financing rounds.

VC funding will remain challenging for many in the health care industry, Silicon Valley Bank’s market manager Milo Bissin told attendees at the recent DHIS West conference. Companies focusing on promising areas such as AI-powered technologies, women’s health and value-based care likely have the best chances to draw investors’ attention.

Medtronic will stop producing ventilators and combine the rest of its patient monitoring and respiratory interventions business into a new business called acute care and monitoring. The company had previously announced plans to divest all of the patient monitoring and respiratory intervention business.

The Innovative Device Access Pathway pilot has launched in the UK with eight new promising medical technologies. The cohort is overwhelmingly diagnostic-focused, with innovative testing for Alzheimer’s, stroke, and liver cancer, amongst others.

Freenome, the Roche-backed early cancer detection liquid biopsy developer has raised yet more money, making it one of the best-funded companies in its sub-sector. With trial results due relatively soon, investors are likely hoping this will be the last funding round required before full commercialization.

The Houston-based cardiovascular device developer has secured renewed support from its investors to fund its pivotal trial of Aortix, a device designed to treat patients suffering from often-fatal, difficult to treat cardiorenal syndrome.

Natera has pounced on the opportunity to purchase Invitae’s reproductive health assets at a bargain price, simultaneously quashing any potential ongoing royalty payments between the two.

The start-up has raised more cash to further commercialize its lighter-weight polysomnography platform.

An interactive look at medtech and diagnostics deals made during December 2023. Data courtesy of Biomedtracker.

The two medtech giants – both of which will soon be releasing new robotic systems – spoke about growth targets and opportunities going into 2024.