(MENAFN- Trend News Agency)
Israeli heart valve treatment company Cardiovalve has announced an agreement for the sale of the company to Venus Medtech (Hangzhou) Inc., a Chinese structural heart disease treatment company, Trend reports with reference to Globes .
Venus Medtech will pay $150 million immediately and a further $150 million dependent on reaching regulatory milestones, among them the CE mark and approval for marketing in China. The agreement commits the buyer to invest another $100 million in Cardiovalve, in accordance with a detailed plan drawn up by the two sides.
Cardiovalve was founded in Israel in 2010 by its CEO Amir Gross. Gross was also the founder of Valtech Cardio, which he led until its acquisition in 2017 by US medical equipment company Edwards Lifesciences in a deal involving an advance payment of $340 million with a potential consideration totaling $1 billion. It is estimated that, so far, Valtech Cardio's investors have received $500-600 million.
When Valtech Cardio was sold, Edwards Lifesciences was interested in only part of its activity, system for treating the mitral valve in the heart. Another of Valtech Cardio's products, a system for replacing the same valve, remained with the company's shareholders. The investors and the team led by Gross decided to continue with the remaining activity, which is how Cardiovalve (formerly Mitraltech Ltd.) was born. $20 million from the proceeds of the exit were invested in the company, plus a further $20 million at a later stage by the same investors, so that the investor group gained twice over.
The main gainer is Peregrine Ventures. Valtech grew up in its Incentive technology incubator. Peregrine identified the need for its product through its familiarity with the major medical device companies, and brought about the founding of the company headed by Gross. Other substantial investors are Larry Best, formerly CFO of Boston Scientific, who has invested in several companies in Israel, US venture capital firm NGN Capital, European fund OXO, and GlenRock. Gross himself is not only CEO but also an investor out of the proceeds of the Valtech exit.
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