Dive Brief:
- Boston Scientific led a $175 million investment in heart disease device developer 4C Medical Technologies.
- The investment, which 4C Medical disclosed Wednesday, will support an ongoing pivotal trial of the company’s transcatheter mitral valve replacement device in the U.S. and Europe.
- 4C Medical’s focus on minimally invasive therapies for structural heart disease aligns with Boston Scientific’s activities. Boston Scientific has a history of buying companies in its venture portfolio.
Dive Insight:
The $175 million series D financing round marks a step up in 4C Medical’s spending power. The company first disclosed funding in 2017, when it raised approximately $9 million, and last added to its bank balance when it closed a $35.4 million series C round in 2022.
Microport Cardioflow, a Chinese developer of transcatheter aortic valves, led the series C round with a $25 million investment. 4C Medical granted Microport exclusive commercial rights for a tricuspid product in China. An unnamed “multinational strategic investor” led a $17 million financing in 2018.
4C Medical, in the latest funding announcement, said new and existing shareholders joined with Boston Scientific for the series D round. The syndicate has equipped 4C Medical to run a pivotal trial that began enrolling patients in the U.S. in October.
The study is enrolling 450 people, according to ClinicalTrials.gov. The target population is patients with mitral regurgitation who are unsuitable for surgery or transcatheter edge-to-edge repair with devices such as Abbott’s Mitraclip. The primary endpoint is looking at a composite of all-cause mortality or heart failure hospitalization and has a primary completion date of September 2029.
Jeff Chambers, chairman of the board at 4C Medical, said in a statement that the financing “strategically positions us to accelerate our progress towards device commercialization.” Boston Scientific has a track record of funding medtech companies through data readouts that inform the prospects of their devices.
The company made 10 venture investments in 2024, Boston Scientific CEO Mike Mahoney said at the J.P. Morgan Healthcare Conference in January. Boston Scientific CFO Daniel Brennan provided an update on the size of portfolio at a TD Cowen event this week, telling attendees that it includes almost 50 companies.
The investments give Boston Scientific a chance to evaluate potential M&A targets.
“I don't know the exact percent, but I bet ... about 25% to 30% of the companies we acquire come from our venture portfolio,” Mahoney said in January. “It's a great way for us to look at disruptive technologies to further increase our weighted average market growth rate.”
Edwards Lifesciences acquired TMVR developer Innovalve Bio Medical for around $300 million last year. The company previously paid $30 million for the option to buy Innovalve. Edwards is also developing its Sapien M3 device for transfemoral TMVR.
