Saints or Saviors? Secondary Buyers Offer Exit for BSX, Others
This article was originally published in Start Up
Following the sale of Boston Scientific's venture portfolio, secondary buyers are positioning themselves as possible purchases of venture capital portfolios.
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REVA Medical started almost 14 years ago as a bare metal stent company, only to run into the drug-eluting stent (DES) revolution. In response to the DES boom, the company reinvented itself as a bioresorbable stent company and then added a drug-eluting capability. However, until the late-stent thrombosis risk of DES emerged in 2006, bioresorbable stents were largely irrelevant. REVA has survived the ups and downs of the device financing environment by adopting creative solutions, including an evolving relationship with a strategic partner and ultimately an Australian IPO. The company is just now reentering the clinic with its pivotal trial, which is both a testament to its perseverance and a sign of the many challenges still ahead, not the least of which being whether REVA’s innovation will ultimately be rewarded.
Lombard Medical’s early efforts to tap into the endovascular AAA market ran into problems as the company’s initial financing strategy left it with too few resources to overcome the challenges that most start-up device companies face. The company’s most recent financing, a VIPE led by UK-investor Abingworth, should see Lombard through FDA approval and launch of its novel EVAR device that is targeted at patients with high degrees of vascular tortuosity. Early clinical data show its device is performing well against competition.
Corporate investors are taking an interest - and equity stakes - in more medical devices start-ups.