Medtronic and CathWorks Forge Agreement to Promote FFRangio System

July 12, 2022—Medtronic announced it has entered into a strategic partnership agreement with CathWorks, a privately held company headquartered in Kefar Sava, Israel, focused on the diagnosis and treatment of coronary artery disease with its fractional flow reserve (FFR) diagnostic technology.

CathWorks’ FFRangio system combines artificial intelligence and advanced computational science to obtain quick and reliable FFR values from routine angiograms, eliminating the need for drug stimulation and invasive pressure wires, noted the company.

As part of the agreement, Medtronic will invest up to $75 million and immediately begin copromotion of the CathWorks FFRangio system in the United States, Europe, and Japan, where it is commercially available.

As part of a separate agreement, Medtronic will have the option to acquire CathWorks when certain undisclosed milestones are met. CathWorks will also have the right to compel Medtronic to acquire the company if Medtronic chooses not to exercise its option.

The acquisition option agreement will expire in July of 2027, with an estimated acquisition of up to $585 million and potential undisclosed earn-out payments postacquisition. Medtronic has held a minority investment in CathWorks since 2018.