Ra Medical Systems has entered into a merger agreement with Catheter Precision.
Under the terms of the agreement, Catheter Precision will become a wholly owned subsidiary of Ra Medical in a stock-for-stock reverse merger transaction.
If completed, the merger will result in a combined publicly traded company that will focus on the cardiac electrophysiology market, Ra Medical Systems said in a press release.
David Jenkins will act as chief executive officer of the combined company. Before taking the role as CEO of Catheter Precision, Jenkins operated several medical device start-ups, including Transneuronix, which was acquired by Medtronic for US$267 million in July 2005, and EP MedSystems, which was acquired by St Jude Medical for US$95.7 million in July 2008.
Catheter Precision has three product areas that it intends to pursue. Its lead product, named VIVO (an acronym for View Into Ventricular Onset), is a US Food and Drug Administration (FDA)-cleared and CE mark approved product that utilises non-invasive inputs to locate the origin of ventricular arrhythmias.
The company also plans to pursue a second generation of Amigo, a robotic arm previously cleared by both FDA and CE, which serves as a catheter control device that can be remotely controlled outside of the procedure room.
Catheter Precision is working toward a third product release in the first half of 2023, which is a vessel closure device that would assist in the closure of the insertion site of the percutaneous catheter or other device used within the body.
“After undertaking a comprehensive process with external advisors to explore and evaluate a range of strategic options, our board and management team believe this transaction with Catheter Precision is the best strategic alternative for Ra Medical and represents an opportunity to create substantial value for our stockholders,” said Will McGuire, Ra Medical CEO. “This business combination, if completed, will result in Ra Medical investors having an equity stake in a company that is focused on developing and commercializing novel technologies and solutions to improve the lives of patients with cardiac arrhythmias under the leadership of a world-class team with decades of medical device industry experience.”
“We look forward to welcoming Ra Medical stockholders to our combined company following the completion of the proposed merger transaction,” said Jenkins, Catheter Precision founder and CEO.