Edwards buys Israeli co Valtech Cardio for $1b

Valtech Photo: Shlomi Yosef

The Or Yehuda based company has developed a valve repair device.

US company Edwards Lifesciences Corporation (NYSE: EW) is acquiring Israeli valve repair device company Valtech Cardio Ltd. The company has developed the Cardioband System for transcatheter repair of the mitral and tricuspid valves. Edwards will pay Valtech $340 million in stock and cash at closing, with the potential for up to $350 million in milestone payments over the next 10 years and $300 million more for Valtech's early-stage transseptal mitral valve replacement technology program.

The Cardioband System combines a reconstruction implant, similar to a surgical annuloplasty mitral valve repair device, with a transcatheter approach. The system utilizes a catheter inserted into the femoral vein and delivered through a transseptal approach across the septum of the heart. The direct annuloplasty system features a unique segmental deployment that conforms to each patient's specific annular geometry, addressing the needs of patients with functional mitral regurgitation.

In 2015, the Cardioband transseptal mitral repair system received CE Mark approval for European sales. Valtech has also initiated a CE Mark trial for the tricuspid application of a similar version of this device, which is intended to reduce tricuspid regurgitation.

Valtech Cardio was founded in 2016 by CEO Amir Gross, Yossi Gross, and Peregrine Ventures headed by Eyal Lifshitz and Boaz Lifshitz. Based in Or Yehuda near Tel Aviv, the company has raised $70 million to date. Last year HeartWare signed an agreement to buy the company for $840 million but pulled out of the deal in January.

Edwards chairman and CEO Michael A. Mussallem said, "As we continue to pursue multiple therapies to address the diverse needs of patients affected by heart valve disease, we saw an important opportunity to incorporate Valtech's technologies into our comprehensive heart valve repair and replacement portfolio. We recognize that physicians will likely need a toolbox of options to treat their patients most effectively. We are very pleased with the progress and future prospects of the multiple internal programs we have underway, and we believe the addition of Valtech's talented team and mitral and tricuspid technologies will present even more opportunities to help patients."

Prior to the close of the transaction, which remains subject to customary closing conditions and is expected in early 2017, Valtech will spin off its early-stage transseptal mitral valve replacement technology program. Edwards will retain an option to acquire that program and its associated intellectual property.

Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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Valtech Photo: Shlomi Yosef
Valtech Photo: Shlomi Yosef
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