Medtronic Moves to Buy CathWorks, Maker of FFRangio, for Up to $585 Million

Medtronic said on Tuesday, February 3, that it will exercise its option to acquire CathWorks, a privately held company based in Kfar Saba, Israel, that makes the FFRangio System for assessing coronary artery disease. The acquisition is valued at up to $585 million with potential undisclosed earn-out payments after the deal, according to Medtronic's announcement, distributed by PR Newswire.

The move follows a 2022 strategic partnership under which Medtronic agreed to co-promote the FFRangio System in the U.S., Europe and Japan, where it is commercially available. Medtronic did not say how much of the $585 million is paid up front.

What CathWorks makes

Fractional flow reserve, or FFR, is a measure physicians use to judge which narrowings in the heart's arteries actually restrict blood flow. Traditionally it is measured with a pressure wire threaded into the vessel, along with drugs that stimulate maximal blood flow. Medtronic said wire-based FFR remains underused largely because of that invasive approach.

The FFRangio System instead combines artificial intelligence with computational science to calculate FFR values along the entire coronary tree from routine angiograms, the X-ray images taken during a catheterization, the company said. It also includes tools to measure lesion dimensions during a procedure, MedTech Dive reported. Medtronic said clinical evidence has shown the system's diagnostic accuracy compared with wire-based FFR.

"Through our co-promotion agreement, we've seen how CathWorks can disrupt the traditional wire-based FFR segment and leverage the power of data and AI to deliver innovative solutions that assist physicians at every step of a patient's journey, from diagnosis to treatment," said Jason Weidman, president of Medtronic's Coronary and Renal Denervation business.

Ramin Mousavi, CathWorks' president and chief executive, said that "With Medtronic's vast global footprint, FFRangio will continue to reach even more patients globally."

Closing and financial impact

The deal is pending clearance from the U.S. Federal Trade Commission and is expected to be completed by the end of Medtronic's fiscal year 2026, subject to regulatory approvals and other customary closing conditions. Medtronic's fiscal year ends in April, MedTech Dive noted. The two companies will continue to operate independently until the deal closes.

Medtronic said it expects the acquisition to be immaterial to its fiscal 2027 GAAP and adjusted earnings per share and neutral to accretive after that.

Medtronic did not disclose CathWorks' revenue.