Cardiology Business

Medtronic and CathWorks Partner on FFRangio

FFRangio System CW 3

In a new strategic partnership, Medtronic is expanding its relationship with coronary artery disease startup CathWorks and securing the option to acquire the company for up to $585M. 

The CathWorks FFRangio System is at the heart of the new alliance. In contrast to traditional fractional flow reserve (FFR) techniques, the AI-powered FFRangio solution delivers multi-vessel FFR results from routine angiograms, eliminating the need for invasive pressure wires or drug stimulations. Data published in JACC in 2020 showed strong performance for FFRangio, which achieved a diagnostic accuracy of 93%.

Medtronic has kept a close eye on CathWorks since 2018, when it made a minority investment in the Israeli startup. Since then, CathWorks has secured FDA clearance for the FFRangio System, locked in two funding rounds totaling $60M, and expanded commercial availability to Japan. 

Medtronic, recognizing the momentum, is now taking the alliance to new heights:

  • Medtronic will invest an additional $75M in CathWorks. 
  • Together, they will co-promote the FFRangio System in the US, Europe, and Japan.
  • If CathWorks achieves certain milestones, Medtronic will have the option to acquire the company for up to $585M. 
  • An interesting provision in the partnership gives CathWorks the ability to compel Medtronic to acquire the company if Medtronic chooses not to exercise its option. 

The Takeaway

Medtronic is tightening its ties to CathWorks through a $75M investment while laying the groundwork for a future acquisition. The partnership appears to make sense for both sides. Medtronic gains a new AI solution to improve the diagnosis of CAD patients, and CathWorks scores a partner with a strong commercial team and large existing customer base. 

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