Medtronic to Acquire Israeli AI Firm

This acquisition builds on a longstanding relationship; Medtronic has been a minority investor in CathWorks since 2018. The two companies formalized a strategic partnership in 2022, with Medtronic investing up to $75 million and co-promoting CathWorks' FFRangio® System in the U.S., Europe, and Japan. The deal structure gives Medtronic the option to acquire CathWorks for up to $585 million, with the potential for additional undisclosed earn-out payments upon closing. This option was contingent on CathWorks meeting certain milestones, and the agreement had an expiration date of July 2027. At the core of the acquisition is CathWorks' FFRangio System, which received FDA 510(k) clearance in late 2018. The system uses artificial intelligence to generate a 3D model of the coronary arteries from routine X-ray angiograms, providing a non-invasive way to measure fractional flow reserve (FFR). Traditionally, FFR measurement is an invasive procedure requiring special wires and drugs to stimulate the heart. The FFRangio system is designed to eliminate the need for these, potentially reducing risk, time, and cost while providing critical data for percutaneous coronary intervention (PCI) decisions. The acquisition is expected to bolster Medtronic's interventional cardiology portfolio significantly. Jason Weidman, president of Medtronic's Coronary & Renal Denervation business, noted that the technology provides real-time data to inform individualized treatment and drive new standards of care. CathWorks was founded in 2013 by Guy Lavi, Dr. Ifat Lavi, and Prof. Ran Kornowski. The company's current CEO is Ramin Mousavi, who has previous experience at Baxter and Edwards Lifesciences. The acquisition is expected to close by the end of Medtronic's 2026 fiscal year, pending regulatory approvals.