Our Q3 2024 medtech review highlights financial activity across M&As, venture investments, and IPOs. Johnson & Johnson acquired V-Wave, a cardiovascular company specializing in heart failure treatment devices like the Ventura Interatrial Shunt (IAS) and RELIEVE-HF, for an initial $600 million, with potential milestones totaling $1.1 billion. Edwards Lifesciences expanded its aortic valve disease solutions by acquiring JenaValve, part of a combined $1.6 billion investment with strategic assets. Owens & Minor strengthened its respiratory and sleep therapy services by acquiring Rotech Healthcare for $1.4 billion in cash.
On the venture side, Imperative Care secured $150 million in series E funding to advance stroke and pulmonary embolism treatments. Magenta Medical raised $105 million to develop its heat pump technology for high-risk PCI, with Novo Holdings leading the round. HistoSonics closed a $102 million series D to commercialize its non-invasive Edison® Histotripsy System for liver tumor treatment, supported by Alpha Wave Ventures.
In IPOs, Pheton Holdings raised $9 million in a US IPO, valuing the cancer radiotherapy firm at $57 million. WORK Medical generated $8 million through its IPO, allocating proceeds to production and product development.
MedTech, Device, Digital Health, Wearables – M&A
In Q3 2024, medtech, device, digital health, and wearables recorded 21 M&A transactions valued at $5.4 billion, including conditional payments, or $3.7 billion in cash, excluding contingents. A decline from Q2 2024 featured fewer deals 16 but much higher total values, reaching $16.3 billion with contingents and $15.9 billion in cash. Across two quarters, the sectors achieved 37 M&As totaling $21.7 billion with contingents and $19.6 billion in cash.
Top MedTech M&A – Q3 2024
Johnson & Johnson acquiring V-Wav – August 2024
Johnson & Johnson announced the acquisition of V-Wave, a cardiovascular medtech company, in August 2024. V-Wave’s essential products include the Ventura Interatrial Shunt (IAS) for congestive heart failure and RELIEVE-HF, currently in clinical trials for advanced heart failure. The deal involves an initial $600 million payment with up to $1.1 billion in potential milestone-based payments. The acquisition was completed on October 9, 2024.
Edwards Lifesciences acquiring JenaValv – July 2024
In July 2024, Edwards Lifesciences acquired JenaValve, a transcatheter aortic valve replacement (TAVR) system developer for aortic valve disease. While the standalone deal value for JenaValve was not disclosed, Edwards’ total investment, including JenaValve and Endotronix, reached $1.6 billion, comprising $1.2 billion in upfront cash and up to $445 million in milestone-based payments.
Owens & Minor acquiring Rotech Healthcare – July 2024
Owens & Minor completed the acquisition of Rotech Healthcare in July 2024 for $1.4 billion in cash. Rotech provides medical equipment services, including ventilators, home oxygen, nebulizers, CPAP, bilevel devices, and eXciteOSA therapy for sleep apnea.
MedTech, Device, Digital Health, Wearables – Venture Funding
In Q3 2024, medtech, device, digital health, and wearables secured $1.6 billion across 57 funding rounds, down from Q2’s $2.1 billion raised over 76 rounds. The last two quarters of 2024 saw 133 rounds, totaling $3.7 billion.
Top MedTech Ventures – Q3 2024
Imperative Care – Series E – $150M – July 2024
Campbell, CA-based Imperative Care, specializing in advanced vascular disease solutions, raised $150 million in a series E round led by Ally Bridge Group. D1 Capital Partners and Bain Capital Life Sciences participated alongside new investors Catalio Capital Management and HealthCor Family Office. The funds will support the development of treatments for stroke and pulmonary embolism.
Magenta Medical – $105M Funding – July 2024
Israeli medtech firm Magenta Medical raised $105 million to further its Elevate heat pump technology. Novo Holdings led the round, including Viking Global Investors, RA Capital Management, and existing investors OrbiMed and NEA. The financing follows a $55 million round last year and will advance clinical programs, aiming for FDA approval for high-risk PCI applications.
HistoSonics – Series D – $102M – August 2024
Minneapolis-based HistoSonics secured $102 million in series D from Alpha Wave Ventures. New backers Amzak Health and HealthQuest Capital joined existing investors, including JJDC, Lumira Ventures, and the State of Wisconsin Investment Board. The funding will support the commercialization of the Edison® Histotripsy System for non-invasive tumor treatment, initially targeting the liver, with expansion plans for other organs.
MedTech, Device, Digital Health, Wearables – IPO Activity
In Q3 2024, medtech, devices, digital health, and wearables recorded two IPOs, raising $17 million. This is an uptick from Q2 2024 when no IPO was recorded. Overall, IPO activity has been minimal in 2024, with just 2 generating $17 million.
Top MedTech IPO – Q3 2024
Pheton Holdings – IPO – $9M – October 2024
Pheton Holdings (PTHL), a Chinese company specializing in cancer radiotherapy systems, raised $9 million through its US IPO, valuing it at $57 million. The company’s flagship product, Feitian Treatment Planning Software (FTTPS), enables precise, customizable treatment planning, including 3D printing features for targeted cancer treatment and organ protection in brachytherapy. Shares closed 3% lower following the IPO, indicating a modest initial market response.
WORK Medical – IPO – $8.37M – April 2024
WORK Medical Technology Group LTD (Nasdaq: WOK) raised $8 million through its US IPO by offering 2,000,000 ordinary shares at $4.00 each, excluding underwriting discounts and expenses. Trading commenced on August 23, 2024, under the “WOK.” The offering includes a 45-day option for underwriters to purchase up to 300,000 additional shares for over-allotments. The proceeds will be used for production upgrades, expansion, product development, marketing, and patent acquisitions.
Also check out MedTech, Devices, Digital Health, Wearables M&A and Ventures – Q2 2024
