Med-Device Investment News
GE brings good things to bioelectronics research
General Electric is giving the Feinstein Institute for Medical Research a bioelectronic jolt.
The Feinstein Institute, R&D mecca of the Northwell Health system, announced a new “strategic alliance” Tuesday with GE Ventures, the multinational conglomerate’s New Jersey-based business-licensing and equity arm.
While no financial terms were disclosed, Northwell Health did note an “investment” that will help the Feinstein Institute’s evolving Center for Bioelectronic Medicine“continue its work in discovering, developing and commercializing new diagnostic and therapeutic solutions in bioelectronic medicine for a wide range of acute and chronic diseases and injuries.”
Under the guiding hand of President and CEO Kevin Tracey, the Feinstein Institute is regarded as a global leader in bioelectronics – and some insiders see the GE partnership as a virtual bouquet to the man considered the father of nerve-stimulation science.
How BSX Plans to Accelerate its Neuromodulation Position
Key growth areas – The neuromodulation market is an attractive growth opportunity for Boston Scientific (BSX). The neuromodulation business is part of Boston Scientific’s Medsurg segment.
The neuromodulation business registered 12% YoY (year-over-year) growth in 2Q16, compared to its growth of around 8% in 1Q16. The above graph shows the neuromodulation business’s contributions to the company’s Medsurg segment’s sales and growth.
Having grown in the mid-teens, the US SCS (spinal cord stimulators) market is a key growth area for Boston Scientific’s neuromodulation business, and the company has a leading position in this market with its product Precision Spectra System.
Also, with the recent launch of the full body MRI (magnetic resonance imaging) SCS system, customers now have access to SCS technology with MRI capabilities.
Another potential market for the neuromodulation business is the DBS (deep brain stimulation) market. DBS systems are used for performing surgical procedures for the treatment of neurological symptoms such as tremors, epilepsy, and Parkinson’s disease.
Boston Scientific has a strong DBS business in Europe and is expected to be in the United States market by 1Q18. The company expects the US DBS market to be around $400 million–$500 million. Medtronic (MDT) and St. Jude Medical (STJ) are Boston Scientific’s major competitors in the DBS market. St. Jude Medical is being acquired by Abbott Laboratories (ABT), as announced by Abbott in April 2016.
Johnson & Johnson’s venture arm is betting on neuromodulation
Especially in the area of chronic pain, where drugs have been the preferred therapy modality, people are looking into neuromodulation given the opioid crisis in the nation. A market research report published in October 2015 projected that the devices pain management market, will grow to $3.5 billion in 2020, up from $3.1 million last year.
Johnson & Johnson doesn’t have an internal neuromodulation program, confirmed a spokeswoman, but the company’s venture arm — Johnson & Johnson Development Corp. (JJDC) — has been pretty active in the neuromodulation space for several years.
The news of the latest investment came earlier this month when JJDC took the lead investor role in a $93 million funding round in Minneapolis-based CVRx. Last November, CVRx received FDA’s Expedited Access Pathway status for its Phase III randomized, controlled clinical, pivotal trial, Baroreflex Activation Therapy for Heart Failure (BeAT-HF). That trial will test the safety and effectiveness of Barostim Neo in congestive heart failure patients. The Expedited Access Pathway program is FDA’s fast-track method of approving novel, innovative devices and is intended to encourage innovation.
Medtronic (MDT) Announces Acquisition of Advanced Uro-Solutions
By StreetInsider.com, February 23, 2015
Medtronic (NYSE: MDT) announced that it has acquired Advanced Uro-Solutions, a privately-held developer of neurostimulation products for the treatment of bladder control issues based in Elizabethton, Tennessee. Terms of the acquisition agreement, which closed in December 2014,were not disclosed.
Advanced Uro-Solutions develops and manufactures the NURO(TM) percutaneous tibial nerve stimulation system, which consists of a small external stimulator and a single, reusable lead to provide temporary stimulation to the tibial nerve. This therapy is 510(k) cleared by the FDA to treat patients with overactive bladder (OAB) and associated symptoms of urinary urgency, urinary frequency and urge incontinence. Medtronic is preparing to launch the NURO system in the U.S. within the next 12 months.
More than 37 million adults in the United States – one in six – suffer from OAB.1, 2 By 2018, it is estimated that 546 million people worldwide will be affected by OAB.3.
Public pain prevention: Nevro sets terms for $100 million IPO
By Renaissance Capital, October 27, 2014
Nevro, which is awaiting approval for a spinal cord stimulation device that treats leg and back pain, announced terms for its IPO on Monday. The Menlo Park, CA-based company plans to raise $100 million by offering 6.3 million shares at a price range of $15 to $17. At the midpoint of the proposed range, Nevro would command a fully diluted market value of $401 million.
Nevro has developed an implantable spinal cord stimulation ( SCS ) system that treats chronic pain in the back and legs. The company notes that currently-approved SCS treatments, which are reimbursable, have limited efficacy for back pain. Its Senza device has been available in European markets since 2010 and Australia since 2010. It submitted a PMA to the FDA in June 2014, and is preparing to launch its device as early as the 1H16, if approved.
Nevro,which was founded in 2006 and booked $27 million in sales for the 12 months ended June 30,2014,plans to list on the NYSE under the symbol NVRO. J.P. Morgan and Morgan Stanley are the joint bookrunners on the deal. It is expected to price during the week of November 3,2014.