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Boston Scientific acquires U of Iowa medical device startup for $295M

By Jesse Schwartz
Published: July 21st, 2021

Medical device manufacturer Boston Scientific has exercised its option to acquire the remaining shares of Farapulse, a University of Iowa (UI) spinout that has created a novel method for treating abnormal heart rhythms.

Initially developed by UI assistant professor Steven Mickelsen, Farapulse’s technology silences heart signals that cause irregular heartbeats without damaging nearby tissue, as opposed to current cardiac ablation devices, which scar heart muscle using either radiofrequency energy or extreme temperatures.

Boston Scientific has been an investor in Farapulse since 2014, with an equity stake of approximately 27%. Last September, the company signed an investment agreement with an option to acquire Farapulse. Now it is paying $295 million for the remaining 73%, giving it full ownership of the start-up.

The agreement also includes an additional $92 million in payments to Farapulse if certain clinical and regulatory milestones are hit, as well as revenue-based payments for the next three years.

“I am humbled by the extraordinary success of Farapulse and recognize the efforts and time so many people dedicated in bringing my original vision to fruition,” says Mickelsen, who founded the start-up and served as CEO in its first two years. The deal with Boston Scientific is expected to close in the third quarter of 2021.

Source: Clay and Milk

Posted under: Tech Transfer e-News

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