The shortage of semiconductor products has plagued the U.S. medical device industry for better than a year, but there is legislation in play in Washington that might bring some relief. The White House held a July 25 briefing during which President Joseph Biden promised his support for the CHIPS Plus Act of 2022, a development that could break a legislative logjam.
Medtronic plc has entered a strategic collaboration with Cathworks Ltd. to expand the reach of Cathworks’ artificial intelligence (AI) guidance system for coronary artery disease management. Medtronic will invest up to $75 million and immediately begin co-promotion of the Ffrangio system on the U.S., European and Japanese market. As part of a separate agreement, Dublin-headquartered Medtronic will have the option to acquire Cathworks once certain undisclosed milestones are met.
Orchestra Biomed Inc. struck a deal with Medtronic plc to develop a cardiac neuromodulation therapy as a potential integrated hypertension treatment for cardiac pacemaker patients. Medtronic also joined a $110 million series D round, led by RTW Investments, to invest in the biomedical company as it announced plans to list on the Nasdaq.
The U.S. Securities and Exchange Commission (SEC) filed insider trading charges against Doron Tavlin, formerly the vice president of business development for Mazor Robotics Ltd., of Caesarea, Israel, over a transaction that took place four years ago. The SEC is charging Tavlin with disclosing the then-impending acquisition of Mazor by Dublin-based Medtronic plc. to a personal friend, but these types of activities are becoming easier to detect thanks to analytics used by the SEC.
The U.S. Federal Trade Commission (FTC) affirmed its proposed order to force Intersect ENT Inc., of Menlo Park, Calif., to divest itself of Fiagon AG before Dublin-based Medtronic plc., can complete its acquisition of Intersect. The announcement comes as no surprise, but serves as a reminder that the FTC is standing by previous threats to tightly control the mergers and acquisitions market in the U.S., a policy stance that has been duplicated in the European Union.
The U.S. FDA’s efforts to improve medical device quality includes a recent draft guidance that pertains to the pilot version of a voluntary improvement program, but stakeholders see a number of critical issues with the draft. A coalition of device makers said this pilot program should include disclosure guardrails that parallel similar guardrails provided for medical device reports (MDRs), a provision related to discovery during product liability litigation that is seen as critical if device makers are to take part in the voluntary improvement pilot.
Medtronic plc has received U.S. FDA 510(k) clearance and breakthrough device designation for its Ligapass 2.0 ligament augmentation system in spine surgery. The surgical treatment is designed to reduce the reoperation rate for proximal junctional kyphosis (PJK), a complication of adult spinal deformity surgery which disrupts spinal ligaments. Ligament augmentation provides strength to the upper instrumented vertebra and adjacent segments while also reducing junctional stress at those levels.
The U.S. FDA may be the most advanced regulatory agency when it comes to artificial intelligence (AI) and machine learning (ML), but developers of these products still have little in the way of FDA guidance to work with in many instances. Cassie Scherer of Dublin-based Medtronic plc, told attendees at this year’s Food and Drug Law Institute annual conference that they should have a product change control protocol ready to go despite the absence of FDA guidance on the subject, an effort that will increase time to market but pay eventually big dividends.
The U.S. FDA has posted notice of an advisory issued by Dublin-based Medtronic plc, regarding the Heartware ventricular assist device due to a pump weld defect, which the agency has identified as a class I recall. The recall affects devices that have been in use since 2006 and is associated with the entry of moisture into the pump center post, which can de-magnetize the magnets and thus trigger malrotation and consequently damage to the welds.
Medtronic plc and Davita Inc. have agreed to form a new company focused on therapies for renal disease, which will require Medtronic to donate its current kidney care business to the new company. Davita in turn would have to produce $75 million in cash and another $25 million in other assets, but would also have to make as much as $300 million in other payments, depending on the accomplishment of certain milestones. The news comes as Medtronic reports mildly disappointing sales results for the company’s fourth quarter while opening a new front in the two companies’ presence in the renal disease space.
