An admirable exit for the Israeli-founded medical device company, Rhythmia Medical
, as it gets picked up by Boston Scientific – a worldwide developer, manufacturer and marketer of medical devices- for $265 million.
The agreement (signed today) calls for an upfront payment of $90 million payable upon transaction closing (expected to be October 12), and up to an additional $175 million in contingent payments based on regulatory, commercial, and sales-based milestones through 2017.
Israelis Doron Harlev and Leon Amariglio founded the company in 2004, and set up headquarters in Boston. Today it is a leader in next-generation mapping and navigation solutions for use in cardiac catheter ablations and other electrophysiology procedures, including atrial fibrillation and atrial flutter.
“The acquisition of Rhythmia Medical is a decisive step forward for Boston Scientific in the electrophysiology ablation business, including the high-growth segment of complex ablation,” said Hank Kucheman, chief executive officer of Boston Scientific.
“Electrophysiology is a $2.5 billion market and growing at a double-digit pace, representing a key growth opportunity for us. Rhythmia Medical has a strong and impressive team, and its technology is expected to add innovation and breadth to Boston Scientific’s suite of solutions in this strategically important space.”
Atrial fibrillation is a disorder that disrupts the ability of the heart to beat regularly and pump blood efficiently. Approximately 15 million people worldwide are affected. Catheter ablation enabled by three-dimensional mapping and navigation is commonly used to treat many heart rhythm disorders, including atrial flutter and atrial fibrillation.
“Rhythmia Medical’s revolutionary mapping technology is expected to significantly enhance physician treatment options and ultimately facilitate and improve what today are long and complicated procedures,” Harlev said in a statement. “Our system is expected to become a very promising tool for physicians to treat patients with complex cardiac arrhythmias. We are excited to combine our mapping system with Boston Scientific’s strong catheter platform and commercialization capabilities.”
Boston Scientific expects to begin a limited market launch of the system in 2013 and full market launch in 2014.