St. Jude Medical Inc. announced this week that they have acquired a 19% stake in ATDC graduate CardioMEMS, investing $60 million with secured rights to purchase the Atlanta medical device company for $375 million upon reaching certain commercialization milestones.
The next step for CardioMEMS will be to seek regulatory approval and scale up manufacturing of their beachhead product, a small implantable monitoring device that wirelessly communicates blood pressure to physicians, facilitating reduced hospital visits for heart failure patients. According to the Minneapolis/St. Paul Business Journal, CardioMEMS expects to spend $30 million on initial commercialization efforts.
St. Jude’s expertise in developing heart care technology is a great fit for CardioMEMS. With demand for healthcare innovation that improves patient care while reducing cost at an all time high, the timing of this deal could not have been more perfect.