The VC firm obviously believes that Axonics will follow Vessix’s example rather than JenaValve’s. All the more so since the Medtronic trial early this year,” says Mr Wisniewski. “After the big trade sale of Ardian to Medtronic, was seen as a very easy-to-use, elegant product and there was this possibility to sell Vessix while it was still not on the market, which of course we took as an opportunity. Mr Wisniewski ascribes this to the enormous excitement in the early days of renal denervation, long before Medtronic’s disastrous phase III results all but demolished this whole area of research ( Failure of Medtronic’s Symplicity trial exacerbates concerns over renal denervation, January 9, 2014). “In medtech, very rarely are companies sold when they’re not commercial they need to show traction in the market for acquisitions – although we have seen recently, with the sale of Vessix and of Endosense to St Jude, you can attract buyers. “I cannot complain about the execution of a trade sale done in 15 months from our initial investment,” Mr Wisniewski says.ĮdRIP has also invested in Mr Cohen’s other company, the transcatheter heart valve developer JenaValve, which has not managed to get taken out despite having a technology already on sale – usually a huge advantage in hooking a buyer. EdRIP had also invested in Vessix to the tune of $23m, and the $125m takeover was a highly pleasing exit. Much of the team behind Axonics, including its cheif executive, Raymond Cohen, was also involved with Vessix Vascular, a renal denervation specialist bought by Boston Scientific in 2012. While Mr Wisniewski says that the technology is impressive and that the company is of on the cusp of an inflection point – it is poised to enter the European market next year – it is telling that the first reason given for the investment decision is Axonics’ management team. In other words, the easiest way to convince a VC to fund your medtech company is by having already convinced it to fund your previous one.ĮdRIP has just led a $32.6m series A preferred stock financing of implantable neuromodulation company Axonics Modulation Technologies. “Companies that have clear proposals, that have been proven to develop well and get deals done, these companies can get financed,” Raphaël Wisniewski, of Edmond de Rothschild Investment Partners (EdRIP), tells EP Vantage. Companies in the early stages are still largely reliant on venture financing, though, and VCs are very picky these days about where they put their money. Larger device makers seem to have a number of options for funding product and business development. Last week was an extraordinary one in medtech, with a $13bn megamerger and an IPO getting away unexpectedly having previously been postponed.
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