New York-listed medical device maker Boston Scientific has paid $60m to buy the remainder of Intelect Medical, one of its corporate venturing unit’s portfolio companies.
As a result of Boston Scientific’s existing equity and debt positions in Intelect Medical, the total cash payment by Boston Scientific was $18m less than the target’s enterprise value.
Intelect Medical is developing technologies for deep brain stimulation (DBS) therapy and Boston Scientific values the target at $78m.
Boston Scientific estimates the current worldwide market for DBS at $400m with projections to grow to more than $1.5bn by 2020.
Boston Scientific originally invested in Intelect’s $7m series B round in June 2007 and followed in its $11m C round in November 2008. Cardiac device maker Greatbatch also invested in both round, while Intelect first raised $3m in September 2005 after spinning out from research by research centre Cleveland Clinic.
Cleveland Clinic Innovations made $28m from the exit, the largest of three exits so far for companies affiliated with the health system’s technology transfer and commercialization group, according to news provider MedCityNews.
The news provider gave a list of Cleveland Clinic-affiliated start-ups that could be generating headlines:
Castlight Health, which news provider Wall Street Journal named as the top venture-backed company in the US.
Arterial Remodeling Technologies, a French company making biodegradable stents to open narrow or blocked arteries and then dissolve. Cleveland HeartLab, which tests for cardiac inflammation.
Explorys, which stores and cleans data.
Tolera Therapeutics, which is developing a drug to fight organ rejection in transplant patients.
Axiomed Spine, a developer of replacement cervical and lumbar spinal discs.