Medtronic Invests $70 million in Israeli Heart Stimulation Company And Has Option to Buy BioControl Medical

Everyone knows the product and implants that Medronic has and now this represents a substantial investment in a company in Israel that also makes implanted heart devices. The implanted device works by stimulating the vagus nerve and is the first that treats heart conditions with nerve stimulation.

The device is approved by the European CE Mark and it working on approval here in the US. The device has been available in Europe since 2008. The investment from Medtronic will help finance trials here in the US. The device can be used in combination with drug therapies. BD

From the Website:

“BioControl Medical develops implantable devices that apply electrical stimulation technology. The CardioFit system consists of an electro-stimulator device with a nerve cuff electrode and an intra-cardiac electrogram (EGM) sensor. By continuously monitoring the EGM signal, stimulation is adjusted to the patient’s optimal heart rate. The vagus nerve is stimulated through a propriety tri-polar cuff electrode that provides accurate control over specific nerve fibers, thus avoiding cross activation of undesired fibers. The device is implanted in a short, procedure in which the electrode is positioned around the vagus nerve in the neck and the device is placed in a subcutaneous pocket in the chest.”

Medtronic Inc. (NYSE:MDT) plans to invest $70 million in neurostimulation device maker BioControl Medical Ltd., according to a report from an Israeli media outlet.

The deal also gives Medtronic the option to acquire the Yehud, Israel-based firm for $550 million if BioControl’s heart-stimulation device receives U.S. regulatory approval, Globes reported. If the device doesn’t receive Food & Drug Administration approval , the price of the option drops to $350 million.