Surgical equipment and systems provider Ethicon has acquired US-based medical device developer Torax Medical, giving an exit to corporates Johnson & Johnson, Kaiser Permanente and Mayo Clinic.
Founded in 2002, Torax produces a device dubbed the Linx Reflux Management System that treats gastro-oesophageal reflux disease (GERD), a digestive disorder also known as acid reflux.
Ethicon, a division of medical group Johnson & Johnson, bought Torax for an undisclosed sum and will add the company’s technology to the range of minimally invasive treatments it supplies to patients with serious medical conditions.
Michael del Prado, chair of Ethicon, said: “Millions of patients continue to suffer from GERD symptoms even when taking high dosages of medication to treat the acid reflux and are left with limited choices to improve their symptoms.
“This novel technology offers patients an attractive minimally invasive surgical alternative that preserves gastric anatomy, establishes normal physiological function and is reversible.”
Torax had raised approximately $103m in debt and equity financing according to press releases and securities filings. Johnson & Johnson’s corporate venturing arm, Johnson & Johnson Innovation – JJDC, led its last round, a $25m series E that closed in August 2016.
Kaiser Permanente Ventures and Mayo Clinic Ventures, subsidiaries of care consortium Kaiser Permanente and medical research firm Mayo Clinic, also took part in the round, as did Sanderling Ventures, Thomas, McNerney & Partners, Accuitive Medical Ventures and Piper Jaffray Companies.
Torax was co-founded by Mayo Clinic subsidiary Mayo Medical Ventures and investment firm Sanderling Ventures, the two investing $3.5m in 2012 before adding Thomas, McNerney & Partners in a $10m round two years later.
Mayo Medical Ventures, Thomas, McNerney & Partners and Sanderling Ventures also took part in a $30m series D round in 2012 that was led by Piper Jaffray Merchant Banking and also backed by Kaiser Permanente and Accuitive Medical Ventures.