According to the report, the valuation for the potential deal comes in at more than $2.5 billion. Citing people familiar with the matter, FT says Medtronic, GE HealthCare and Johnson & Johnson are circling the business. Johnson & Johnson already has an interest in HistoSonics, with its Johnson & Johnson Innovation – JJDC, Venture Investors, arm taking part in HistoSonics’ $102 million Series D round last year.
Other suitors could also emerge in pursuit of a takeover, according to FT.
The report says final bids are expected in the coming weeks, with no deal guaranteed. Additionally, FT says Citigroup serves as HistoSonics’ advisor for the potential sale. Consideration of a sale reportedly follows the exploration of a public listing, FT said. However, Histosonics reportedly prioritized a sale due to the volatility of the markets hampering IPO activity.
If a deal goes through, one of the interested companies would be adding the HistoSonics Edison platform to its offerings. Edison uses focused ultrasound energy — delivered via a robotic arm — to provide histotripsy for the noninvasive destruction of tumors. Edison mechanically destroys and liquifies targeted tissue and tumors without the invasiveness or toxicity of traditional procedures.
HistoSonics company believes Edison’s mechanism of action could provide significant advantages to patients. Those include the ability of the treatment site to recover and resorb quickly. Additionally, the platform enables physicians to monitor the destruction of tissue under continuous, real-time visualization and control.
Minneapolis-based HistoSonics won FDA de novo clearance for Edison to treat liver tumors in October 2023, making it the first and only histotripsy platform available in the U.S. The company also seeks to bring it to kidney and pancreatic cancer.
