US-based medical device maker Recor Medical is set to be acquired by existing shareholder Otsuka Holdings, the parent company of healthcare group Otsuka, and its Otsuka Medical Devices subsidiary.
Neither company disclosed the size of the transaction, which is dependent on approval by Recor’s other shareholders.
Recor Medical has developed a technology dubbed Paradise System that uses a combination of intravascular catheters, water-based cooling and high-intensity ultrasound to treat hypertension, a condition that causes high blood pressure.
The product is available in the European Union but is yet to secure regulatory approval in the US. Otsuka’s acquisition offer follows approval from US regulator Food and Drug Administration for a clinical study.
Recor will continue to develop the Paradise System following the acquisition and will target further commercialisation internationally. It also plans to develop additional products targeting heart failure, kidney disease and metabolic conditions.
Otsuka Medical Devices agreed the deal at the same time as it looks to build an incubator and clinical development hub that will be present in the US and Europe.
Recor received $15m in series D funding from Otsuka and venture capital firm Sofinnova Partners in 2015, and closed $22m in debt financing in August 2017 according to a securities filing. It has not revealed details of its earlier funding.