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Acutus Medical (Nasdaq:AFIB) announced today that it completed the first milestone under its asset purchase agreement with Medtronic (NYSE:MDT). Products
Carlsbad, California-based Acutus announced in April that it agreed to sell its left-heart access portfolio to Medtronic for $50 million.
It completed the first of two closings in its portfolio sale in June.
The achievement of the first milestone triggers a $20 million earnout payment from Medtronic. It allows Acutus to become an original equipment manufacturer (OEM) for Medtronic as well. Acutus plans to continue selling its left-heart access portfolio until its commercial distribution transitions to Medtronic.
“We are very pleased with the partnership we have built with Medtronic, with both teams working diligently to ensure a smooth transition for all stakeholders. We are excited about the potential to accelerate this innovative product line’s impact on patient care with Medtronic’s global reach, and we look forward to supporting Medtronic’s left-heart access commercial launch,” Acutus Medical President and CEO David Roman said in a news release. “Achieving this key milestone further advances our strategic priorities to strengthen the company’s financial position and enables us to intensify focus on our differentiated mapping and therapy platform.”
Under the agreement, Medtronic paid $50 million in cash consideration to Acutus at the first closing. This deal included, among other things, intellectual property rights to the left-heart access portfolio. That extends to certain equipment used in the manufacturing of these products, too.
The first major milestone amounts to gross proceeds of $20 million. Acutus remains eligible for additional milestone payments. These potential payments relate to certain regulatory activities, as well as four years of revenue-based earnouts.
Acutus’ left-heart access portfolio includes its AcQCross line of sheath-compatible septal crossing devices. It also features the AcQGuide Mini integrated crossing device and sheath. Additionally, it includes the AcQGuide Flex steerable introducer with transseptal dilator and needle and the AcQGuide Vue steerable sheath.
Filed Under: Business/Financial News, Cardiovascular, Featured, Mergers & Acquisitions, Structural Heart Tagged With: Acutus Medical, Medtronic
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