SoniVie TIVUS device
2 Corporation has officially entered into a definitive agreement to acquire Israeli medtech startup SoniVie Ltd., an Israeli-based medtech startup specializing in innovative intravascular ultrasound solutions, in a deal worth up to $600 million. SoniVie, a privately held medical device company, has developed the TIVUS™ (Therapeutic Intravascular Ultrasound) System, an investigational technology designed to treat hypertensive disorders by denervating nerves surrounding blood vessels.
On a 100% basis before consideration of Boston Scientific’s current equity ownership in SoniVie and other closing adjustments, the transaction price consists of $400 million up front, and up to $200 million upon achievement of a regulatory milestone.
As a strategic investor in SoniVie, Boston Scientific currently holds an equity stake of approximately 10 percent. Therefore, the transaction consists of an upfront payment of approximately $360 million for the 90 percent stake not yet owned and up to $180 million upon achievement of a regulatory milestone.*
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Boston Scientific anticipates the transaction to be completed in the first half of 2025, subject to customary closing conditions. On an adjusted basis, the company expects the transaction to be slightly dilutive to adjusted earnings per share (EPS) in 2025, and to offset this through internal cost efficiencies and trade-offs.
Medtech is one of the fields that Israel Startup Nations excels in, and, along with cybersecurity, seems to be one of the fields that will always be in demand, regardless of recessions. While the world is still reeling from a global financial crisis, Israel Startup Nation firms are still moving forward. For example, Novocure, an Israeli medtech company that develops and sells a treatment using electric fields for various types of cancer, has been seeing success in its studies of cancer treatments.
Hypertension, a major cardiovascular risk factor driven in part by sympathetic nervous system overactivity, is frequently difficult to manage with conventional treatments. The TIVUS system, which utilizes ultrasound for renal denervation (RDN), aims to address this challenge. Ultrasound’s deeper tissue penetration compared to radiofrequency energy may enable quicker, more effective renal nerve ablation, offering a promising alternative or adjunct to current medications for better blood pressure control.
SoniVie is a medical device company developing TIVUS, the only ultra-sound denervation platform with active development programs in three therapeutic areas: pulmonary artery denervation for pulmonary hypertension, renal artery denervation for resistant hypertension, and lung denervation for chronic obstructive pulmonary disease with chronic bronchitis. These diseases affect millions of patients in the United States and Europe. SoniVie has operations in Israel, US and Europe. This minimally invasive investigational procedure can be used to treat patients suffering from hypertension, which impacts millions of people worldwide and substantially increases their risk of heart attack, stroke and kidney failure.
