The NIH and CDC granted researchers at the Feinstein Institutes for Medical Research at Northwell Health $700,000 to investigate an in-the-ear stimulator as a treatment for post-traumatic stress disorder (PTSD) in first responders to the attack on the World Trade Center 20 years ago. The researchers will enroll 30 World Trade Center first responders with chronic PTSD in a sham-controlled trial to test the effectiveness of a device that uses transcutaneous auricular stimulation of the vagus nerve, which has shown promise in preclinical studies.
Channel Medsystems Inc. completed a fundraising round to enable the nationwide commercial launch of its Cerene cryotherapy device for treatment of heavy menstrual bleeding thanks to a $26 million investment by Innovahealth Partners LP. The investment is among the largest New York-based Innovahealth has made in any company so far and makes it Channel’s largest shareholder.
ICU Medical Inc. reached an agreement with Smiths Group plc to buy Smiths Medical division for $2.35 billion in cash and stock. The deal represents an improvement in the terms reached between Trulli Bidco Ltd. and Smiths Group in early August for the purchase of the same division. Trulli, a wholly owned subsidiary of Boston-based equity firm TA Associates, offered $2.3 billion with a kicker of $200 million contingent on future performance. “This is a positive for Smiths, and comes as something of a surprise (to us, and we suspect, investors),” said Andy Douglas, equity analyst, at Jefferies Equity Research. “The uplift in value of $0.4 million is helpful, and the opportunity to share more future upside is also a positive.”
Centaur Diagnostics Inc. herded up interest in its gamified system for labeling medical data for use in artificial intelligence (AI) applications. The Boston-based company raised $12 million in a series A round that will help Centaur build out its crowdsourced system for labeling medical images, videos, text and audio recordings. The round brings the company’s funds raised to date to $15 million. Matrix Partners led the charge along with Accel Partners, Global Founders Capital, Susa Ventures, and Y Combinator.
Multiple sizes of Neptune Medical LLC’s overtube for gastrointestinal (GI) procedures that allows thin-walled tubes to toggle between flexible and rigid states received FDA clearance. With the clearance, the Burlingame, Calif.-based company now has nine sizes of cleared single-use overtubes with more in the wings. The Pathfinder endoscope overtube device uses Neptune’s Dynamic Rigidization technology to keep tubes from looping during procedures, a problem that leads to procedure failure, patient pain and complications in colonoscopy and other GI procedures.
After weeks of heated rumors, Baxter International Inc. and Hillrom Holdings Inc. reported they have reached terms on a blockbuster deal. Baxter will acquire Hillrom for $156 per share in cash, giving the transaction an equity value of $10.5 billion and a total enterprise value of $12.4 billion, after factoring in the assumption of debt. The deal is expected to close in early 2022. The acquisition continues the fast and furious pace of med-tech acquisitions in 2021, a sharp change from the lethargic deal flow seen in 2020. So far, the sector has seen 407 transactions this year, more than four times the 97 posted in the pharma segment.
Onkos Surgical Inc. nabbed an additional $15 million from its existing investors in a series C fundraising round. The Parsippany, N.J.-based company plans to use the new cash to accelerate research and development for its product line which is designed to meet the specialized needs of oncology patients who require orthopedic surgery and the surgeons who work with them.
The race is on. After six years as the only FDA approved devices for left atrial appendage closure, Boston Scientific Corp.’s Watchman products face a challenger, Abbott Laboratories’ Amplatzer Amulet. With the Amulet’s FDA approval in mid-August and positive results in a head-to-head trial presented at the 2021 European Society of Cardiology Congress on Tuesday, the Watchman has reason to look over its shoulder at a competitor that could change the game entirely. The trial results were published simultaneously in Circulation.
Genome Medical Holding Co. put its competitors on notice with two big moves designed to position the company as a leader in genetic testing and virtual genomic care. The company acquired Genematters LLC, a provider of telegenetics counseling, and closed a $60 million series C fundraising round. Together, the moves stand to significantly expand Genome Medical’s digital infrastructure and clinical expertise in genetics services.
Vagus nerve stimulation (VNS) researchers notched another success with FDA approval of a drug-free rehabilitation system that uses the technology to help patients who have lost mobility in their hands and arms as a result of ischemic stroke regain function. Microtransponder Inc.’s Vivistim pairs rehabilitation exercises with VNS to enhance their impact. The clinical study evaluated by the FDA for the system's approval showed that Vivistim doubled the improvement in upper extremity motor function compared to supervised rehabilitative exercises alone at six weeks and 90 days.
