Medical Device Deals Update, March 2015

Derived from Strategic Transactions, Informa’s premium source for tracking life sciences deal activity, the Medical Device Deals Update column is a survey of recent medtech M&A, alliance, and financing activity. This month’s column covers deals announced February-March 2015.

Mergers & Acquisitions
3M Co. & Ivera Medical Corp.	3M Co. is acquiring Ivera Medical Corp., which makes products that disinfect devices used in accessing a patient’s bloodstream. [See Deal]
Audika Group SA & William Demant Holding AS	William Demant Holding AS exclusively negotiated with public French company and fellow hearing loss device maker Audika Group SA to buy 53.9% of the latter firm's stock for €17.78 ($20.26, a 35% premium). Based on the 9.4mm Audika shares outstanding as of mid-January, the deal would be valued at €91mm. [See Deal]
Becton Dickinson & Co. & CRISI Medical Systems Inc.	Becton Dickinson & Co. acquired CRISI Medical Systems Inc., a privately held firm developing devices that improve the safety of intravenous drug delivery. [See Deal]
Boston Scientific Corp. & American Medical Systems Holdings Inc. (a division of Endo International PLC)	Boston Scientific Corp. will pay Endo International PLC $1.6bn in cash to acquire the men’s health business of its American Medical Systems Holdings Inc. division. The deal, which brings to BS a variety of products including a laser system for BPH, as well as treatments for urinary incontinence and erectile dysfunction, also includes a $50mm earn-out payment that could be realized in 2017 based on 2016 sales of the acquired unit. [See Deal]
Branch Medical Group Inc. & Globus Medical Inc.	Globus Medical Inc. acquired private medical device manufacturer Branch Medical Group Inc. for $52.9mm in cash. [See Deal]
Cardinal Health Inc. & Cordis Corp. (a division of Johnson & Johnson)	Johnson & Johnson exited the cardio stent space through the sale of its Cordis Corp. business to Cardinal Health Inc. for $1.9bn in cash ($1.6bn, net of the present value of tax benefits). Cardinal will fund the deal through existing cash and $1bn in new senior unsecured notes. [See Deal]
Cyberonics Inc. & Sorin Group SPA	Cardiovascular device firm Sorin Group SPA merged with neuromodulation specialist, fellow publicly traded LivaNova PLC to create a new, yet-unnamed, company that will trade on both the Nasdaq and London Stock Exchange. [See Deal]
DePuy Synthes (a division of Johnson & Johnson) & Olive Medical Corp.	Johnson & Johnson’s DePuy Synthes acquired privately held Olive Medical Corp. (visualization equipment) for an undisclosed amount. [See Deal]
Diagnoplex SA & Novigenix SA	Novigenix SA acquired fellow private Swiss molecular diagnostics firm Diagnoplex SA, and now has full control of the Colox colorectal cancer diagnostic. [See Deal]
Nikon Corp. & Optos PLC	Nikon Corp. acquired publicly traded Optos PLC (ophthalmic digital imaging) for £259.3mm ($402mm), or £3.40 per share, a 32% premium. [See Deal]
Alliances
Arc Medical Design Ltd. & Norgine BV	Norgine BV will sell Arc Medical Design Ltd.’s Endocuff Vision endoscope device in major European markets, Australia, and New Zealand. [See Deal]
BioSurface Engineering Technologies Inc. & Ferring Pharmaceuticals AS	Ferring Pharmaceuticals AS acquired rights from BioSurface Engineering Technologies Inc. (BioSET) to assets designed to improve bone health, including Phase III-ready orthobiologics Amplex and Prefix. [See Deal]
BL&H Co. Ltd., Biotech-IgG AB & Vigilant Biosciences Inc.	Vigilant Biosciences Inc. signed its first marketing partners for the OncAlert oral cancer risk assessment system. BL&H Co. Ltd. gets exclusive rights for five years in Korea, while Biotech-IgG AB has exclusive rights in Denmark, Norway, and Sweden for three years. [See Deal]
Genoma SA (a division of Esperite NV) & IntegraGen SA	IntegraGen SA licensed Genoma SA worldwide rights (outside of the US) to its autism spectrum disorder diagnostic. [See Deal]
Gentag Inc. & Mayo Clinic	Gentag Inc. is teaming up with the Mayo Clinic to develop next-generation wearable biosensors for treating obesity and diabetes. [See Deal]
Leica Biosystems Ltd. (a division of Danaher Corp.'s Leica AG) & Novacyt SA	Novacyt SA chose Leica Biosystems Ltd. to exclusively sell its NOVAPrep cytology platform in China, Hong Kong, Macau, and Taiwan for an initial period of five years. [See Deal]
MDxHealth SA & oncgnostics GMBH	MDxHealth SA licensed oncgnostics GMBH limited nonexclusive worldwide rights to use its methylation-specific PCR (MSP) technology in cervical cancer diagnostics. [See Deal]
Financings
ACT Genomics Co. Ltd.	Molecular diagnostics start-up ACT Genomics Co. Ltd. raised $8mm in Series A funding from undisclosed new and existing investors. [See Deal]
Apollo Endosurgery Inc.	Athyrium Capital Management provided Apollo Endosurgery Inc. (minimally invasive endoscopic surgical products) with a $50mm secured term loan that will repay money borrowed when Apollo bought Allergan’s obesity intervention division in late 2013. [See Deal]
CAS Medical Systems Inc.	CAS Medical Systems Inc. (noninvasive patient monitoring devices) netted $8.7mm through the public sale of 7.1mm common shares (including the overallotment) at $1.30. [See Deal]
Check-Cap Ltd.	Israeli cancer diagnostics company Check-Cap Ltd. netted $11.2mm through its initial public offering on the US Nasdaq market. The company sold 2mm ordinary shares at $6 (it planned to sell 1.2mm shares at $10-12), and also issued 1mm five-year Series A warrants to purchase ordinary shares at $7.50. [See Deal]
Check-Cap Ltd.	Concurrent with the closing of its initial public offering in the US, Israeli diagnostic imaging firm Check-Cap Ltd. netted $10.9mm through a private placement of 2mm ordinary shares at the IPO price ($6). Investors also received 1mm five-year Series A warrants to purchase ordinary shares at $7.50, and 3mm long-term incentive warrants which, when vested, allow for the purchase of ordinary shares at $6.90; the long-term incentive warrants expire in 2022. [See Deal]
Daktari Diagnostics Inc.	Daktari Diagnostics Inc. (infectious disease tests) raised $15.5mm in its Series D financing led by new backer Eastern Capital and returning investor Merck Global Health Innovation Fund, which were joined by other existing shareholders Norwich Ventures and Partners Innovation Fund. Ferghana Partners was the placement agent. The company recently completed validation studies of its Daktari CD4 HIV platform and expects to launch the product globally this year. [See Deal]
GlySens Inc.	GlySens Inc. (glucose monitors) raised $12mm via its Series C financing from undisclosed new and returning shareholders. [See Deal]
Hansen Medical Inc.	Hansen Medical Inc. raised $35mm through the sale of 53.8k convertible preferred shares at $650. Hansen will use the proceeds for the commercialization of its Magellan robotic system and to drive adoption of the Sensei robotic system. [See Deal]
InspireMD Inc.	InspireMD Inc. (embolic protection systems) netted $12.7mm through the follow-on public sale of 34.5mm common shares at $0.40 each. The company also issued five-year warrants to buy another 34.5mm shares exercisable at $0.55 per share. The funds will help support the launch of its CGuard EPS and commercialization of MGuard Prime. [See Deal]
Invuity Inc.	Invuity Inc. (surgical photonics) raised $20mm in equity funding led by Wellington Management Company. The round also included an investment by new board member Greg Lucier, along with previous investors Healthcare Royalty Partners, Valence Life Sciences, InterWest Partners, and Kleiner Perkins Caufield & Byers. In March 2014 Invuity raised a Series E round of $36mm. [See Deal]
Lifecode Inc.	Lifecode Inc. (molecular diagnostics) raised $20.5mm in Series A funding from Sequoia Capital, the Mayo Clinic, and Mayo Ventures. The company was formerly known as Silicon Valley Biosystems, but changed its name earlier this year. [See Deal]
Lineagen Inc.	Lineagen Inc., which sells the autism molecular diagnostic FirstStepDx Plus and is developing tests for MS and COPD, raised $15.8mm in Series C financing in two tranches ($3.63mm and $12.17mm). [See Deal]
Lineagen Inc.	Lineagen Inc. (testing services for autism, other development disorders, and additional diseases) raised $4mm in debt financing from Silicon Valley Bank. The company concurrently completed a $15.8mm Series C round. [See Deal]
Neovasc Inc.	Neovasc Inc. (cardiovascular devices) raised $75mm through the follow-on public offering of 10.4mm common shares (including the overallotment) at $7.19 each. Company stockholders sold an additional 1.7mm shares. Proceeds will support ongoing development of its Tiara transcatheter device for mitral regurgitation (including initiating an IDE study) and help commercialize the Reducer percutaneous treatment for refractory angina in Europe (and also commence an IDE study in the US). [See Deal]
oncgnostics GMBH	Cancer diagnostics start-up oncgnostics GMBH closed a Series A financing of seven-digit Euro millions (at the low end Strategic Transactions assumes €1mm ($1mm)). New investor beteiligungsmanagement thüringen GMBH led and was joined by other first-time backers Sparkasse Jena-Saale-Holzland and Anastasia Zepik, and seed shareholders High-tech Gruenderfonds (HTGF) and Stiftung fuer Technologie, Innovation und Forshung Thueringen (STIFT). [See Deal]
OpGen Inc.	OpGen Inc. (molecular diagnostics and bioinformatics aimed at multi-drug-resistant organisms) filed for its initial public offering on Nasdaq. [See Deal]
Pocared Diagnostics Ltd.	Pocared Diagnostics Ltd. raised $15mm in an undisclosed financing round. Funds will help finish clinical trials and increase manufacturing for its P-1000 analysis platform and SP next-generation sample processor. [See Deal]
Signal Genetics Inc.	Signal Genetics Inc. (predictive molecular diagnostics for cancer) netted $9.6mm through the public sale of 3.7mm shares (including the overallotment) at $2.80. The offering is the first for the company since it went public via an $8mm IPO in June 2014. [See Deal]
Tandem Diabetes Care Inc.	Tandem Diabetes Care Inc. (insulin pumps) netted $65.3mm through the follow-on sale of 6.04mm common shares (including the overallotment) at $11.50 each. [See Deal]
TearLab Corp.	TearLab Corp. (point-of-care tests that measure biomarkers in tears to help diagnose and manage ophthalmic disease, initially dry eye) received $15mm up front in six-year debt financing from CRG LP and its affiliates. [See Deal]
Theralase Technologies Inc.	Therapeutic medical laser company Theralase Technologies Inc. publicly sold 18.2mm shares at $Cdn0.44 to net $Cdn7.4mm ($5.9mm). Investors also received 60-month warrants to buy 18.2mm shares at $Cdn54. Existing stockholders purchased approximated 179 shares. [See Deal]
Valeritas Inc.	Valeritas Inc. (insulin devices) filed for its initial public offering. The company plans to sell 5mm shares at a price range between $14-16. [See Deal]
Velano Vascular	Velano Vascular Inc. (developing a new technology to improve on traditional phlebotomy needles for blood draws) raised $5mm in a Series A round led by First Round Capital. Other investors included White Owl Capital, Kapor Capital, Safeguard Scientifics, Griffin Hospital, and Children's Hospital of Philadelphia. [See Deal]
Veniti Inc.	Veniti Inc. (devices for venous diseases) raised over $17mm through the sale of Series C equity and debt. Returning shareholders Baird Capital and Tekla Capital Management led the Series C portion and were joined by company participants. The senior secured debt funding was provided by Life Sciences Alternative Funding. The financing will support further development and eventual commercialization of its Vici Venous Stent system. [See Deal]
ViewRay Inc.	ViewRay Inc. (image-guided radiation therapy for cancer) filed for its initial public offering. It hopes to sell 4mm shares for between $12-14 a share. [See Deal]
Vigilant Biosciences Inc.	Cancer diagnostics company Vigilant Biosciences Inc. raised $5.5mm through its Series B round from White Owl Capital Partners, venVelo, the Florida Institute for the Commercialization of Public Research, and existing backers, along with private and angel life sciences investors. Funds will be put towards CE mark and FDA approval of OncAlert, an oral rinse that detects early-stage oral cancer. [See Deal]

Strategic Transactions