Medtronic Inks Co-promotion Deal With Israeli Privately-held Company CathWorks
(RTTNews) - Healthcare technology firm Medtronic plc (MDT) announced Tuesday it has entered into a strategic partnership agreement with Israeli privately-held company CathWorks, which aims to transform how coronary artery disease (CAD) is diagnosed and treated.
As part of the agreement, Medtronic will invest up to $75 million and immediately begin co-promotion of CathWorks' FFRangio System in the U.S., Europe and Japan, where it is commercially available.
As part of a separate agreement, Medtronic will have the option to acquire CathWorks once certain undisclosed milestones are met. CathWorks will also have the right to compel Medtronic to acquire the company if Medtronic chooses not to exercise its option.
The acquisition option agreement will expire in July of 2027, with an estimated acquisition of up to $585 million and potential undisclosed earn-out payments post-acquisition. Medtronic has held a minority investment in CathWorks since 2018.
The co-promotion agreement is expected to be neutral to Medtronic's fiscal year 2023 GAAP and adjusted earnings per share and neutral to accretive thereafter.
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