Tuesday 19 June 2018

Arcapita sells US-based medical firm for $450m

Manama, June 30, 2014

Arcapita, a global investment management firm headquartered in Bahrain, said it has signed an agreement to sell its portfolio company CardioMems, a leading medical device company, to US-based St. Jude Medical for $450 million.

Headquartered in Atlanta (US), CardioMems is a medical device company that has developed and is commercializing proprietary wireless sensing and communication technology for the human body.

Founded by Jay Yadav, CardioMems' technology platform is designed to improve the management of severe chronic cardiovascular diseases such as aneurysms, heart failure and hypertension.

Arcapita completed the transaction for its Ventures I fund along with St. Jude Medical.

Minnesota-headquartered St. Jude Medical had previously invested $60 million for a 19 per cent shareholding of CardioMems and has now exercised its exclusive option to purchase the remaining 81 per cent of the company, in a transaction valued in excess of $450 million.  

CardioMems is a leading medical device company that develops implantable wireless sensors which gather and transmit pressure information from inside the human body. Recently, the comany received US FDA (Food and Drug Administration) approval for its Heart Failure Management System.
Commenting on the sale, CEO Atif A. Abdulmalik said: “We have supported CardioMems as a venture partner for several years and are pleased that the technology developed by the company is proving effective in the provision of higher standards of care for heart patients. We are also delighted with the very positive returns we have generated from our investment in the business, benefiting investors in the Arcapita Ventures I fund."

John Huntz, the head of Arcapita Ventures and chairman of CardioMems, said Jay Yadav, the founder and CEO of CardioMems and his team, not only came up with an innovative and revolutionary approach to treating heart failure but have spent the past 12 years making this a reality.

"It was my pleasure to work with a great team of people who constantly pushed the boundaries of medical innovation," he noted.

"Arcapita is proud to have been the lead investor in this ground-breaking technology which will provide invaluable support to millions of heart failure patients and reduce hospitalization rates in the U.S. and around the world," he added.

The other major investors in CardioMems include Boston Millennia Partners, Johnson & Johnson and Foundation Medical Partners.-TradeArabia News Service

Tags: US | Arcapita | medical |

More Health & Environment Stories

calendarCalendar of Events