Dive Brief:
- Surgical robot developer Stereotaxis has struck a deal to buy Access Point Technologies (APT) for an undisclosed sum, the companies said Monday.
- Stereotaxis is working with APT to develop a robotically steered diagnostic catheter for use with its cardiovascular robots. The company sees benefits to bringing capabilities for developing interventional disposal medical devices in house, rather than relying on service providers.
- Stereotaxis also sees an opportunity to use its U.S. field force to grow revenues, as APT makes most of its sales internationally. The company expects APT to contribute around $5 million in sales in the first year post-acquisition.
Dive Insight:
Stereotaxis has developed robotic systems for procedures such as cardiac ablation. In addition to developing surgical robots, Stereotaxis has worked with third parties to create robotically steered guidewires and guide catheters.
An APT-manufactured guide catheter is scheduled to come to market early in 2025. The catheter and a guidewire that Stereotaxis plans to submit to regulators in the third quarter could give the company a source of ongoing sales beyond its surgical robots. However, the projects have exposed a need for more in-house capabilities.
On Monday, Stereotaxis CEO David Fischel said on an earnings call the reliance on third parties to develop devices was “a reasonable solution” to a gap in the company’s capabilities but is “unlikely to be ideal” for the next phase of its strategy.
“The lack of in-house catheter development and manufacturing expertise has been limiting,” Fischel said.
Buying APT “will significantly amplify and accelerate Stereotaxis' next wave of innovation efforts,” the CEO said, as it works to develop a broader family of robotically steered interventional devices across a range of endovascular procedures. Stereotaxis plans to continue working with other third parties.
Stereotaxis has not disclosed the financial terms of the deal. Fischel said most of the potential value is tied to regulatory and commercial milestones such as approvals for specific robotically steered catheters. The milestones span the coming five years, and some depend on “meaningful” device adoption, the CEO said.
Stereotaxis can pay the upfront fee and milestones in stock. The deal therefore preserves the company’s cash reserves, which were $18.2 million at the end of March. Stereotaxis reported a net loss of $4.5 million in the first quarter but said its balance sheet will allow it to become profitable without additional funding.
The company expects the APT deal to close in the third quarter. After that, the more than 20 sales reps that Stereotaxis has in the U.S. will start selling APT’s devices.
Fischel sees two benefits: Stereotaxis representatives could grow U.S. revenues by promoting the devices to their contacts because APT generates most of its sales in Asia and Europe. The devices could also open doors to new customers who may later be interested in the company’s surgical robots.
