Acutus Medical has announced that it has achieved the first milestone under the asset purchase agreement of its left-heart access portfolio with Medtronic.
This triggers a US$20 million earnout payment from Medtronic to Acutus and allows Acutus to become an original equipment manufacturer (OEM) for Medtronic. Acutus will continue selling the left-heart access portfolio until commercial distribution is transitioned to Medtronic.
“We are very pleased with the partnership we have built with Medtronic, with both teams working diligently to ensure a smooth transition for all stakeholders. We are excited about the potential to accelerate this innovative product line’s impact on patient care with Medtronic’s global reach, and we look forward to supporting Medtronic’s left-heart access commercial launch.” said David Roman, president & CEO of Acutus Medical. “Achieving this key milestone further advances our strategic priorities to strengthen the company’s financial position and enables us to intensify focus on our differentiated mapping and therapy platform.”
On 30 June 2022, Acutus completed the first closing of its previously announced sale of its left-heart access portfolio, which includes the AcQCross septal crossing devices, the AcQGuide MINI sheath and integrated crossing device, the AcQGuide FLEX Steerable Introducer with integrated crossing device, and the AcQGuide VUE steerable sheath to Medtronic.
Under the terms of the agreement, at the first closing, Medtronic paid cash consideration of US$50 million to Acutus for, among other things, intellectual property rights to the company’s left-heart access portfolio and certain equipment used in the manufacturing of these products. Acutus has now completed the first major milestone in this transaction with OEM qualification, which will bring in gross proceeds of US$20 million. Acutus remains eligible for additional milestone payments associated with certain regulatory activities as well as four years of revenue-based earnouts.