Otsuka Holdings (TYO:4578) said today that it plans to acquire the remaining stake it doesn’t already own in ReCor Medical and the renal denervation device it’s developing to treat hypertension.
Tokyo-based Otsuka led ReCor’s $15 million Series D in April 2015 to back Palo Alto, Calif.- and Amsterdam-based ReCor’s Radiance-HTN study, which will test its Paradise system in patients with high blood pressure in the U.S. and E.U. In May 2016 the duo inked a deal that gave Otsuka exclusive rights to pursue clinical trials, regulatory approval and commercialization of ReCor’s Paradise device in Japan, China, Korea and elsewhere in Asia.
Last November Otuska shifted its investment in ReCor to its medical device business. The full buyout comes after ReCor won FDA approval for a new pivotal study, Radiance II, of the Paradise ultrasound denervation system. Today the companies said ReCor will continue to develop the Paradise device and explore other indications, including heart failure, kidney disease and metabolic disorders, and build incubator and clinical hubs for Otsuka Medical Devices in the U.S. and Europe.
“We are very encouraged by the results of our clinical trials with the Paradise system, which have been conducted in the U.S. and Europe – none of which would have been possible without Otsuka and the strong relationship between our teams. This transaction demonstrates that tremendous value can be created for companies and venture investors through strategic partnerships,” president & CEO Andrew Weiss said in prepared remarks.
“We are grateful for the support ReCor has enjoyed from our co-founders Antoine Papiernik of Sofinnova Partners and Dr. Jacques Seguin and our clinical study partners worldwide. We are excited to move forward in our collaboration with Otsuka to make the Paradise renal denervation system a standard of care for treatment of hypertensive patients worldwide,” added COO and founder Mano Iyer.
“Our decision today reflects not only ReCor’s excellent clinical results, but also the close relationship we have built over the years. Our acquisition of ReCor represents an important step forward for Otsuka’s medical device business, leveraging an innovative technology with Otsuka’s expertise in pharmaceuticals and clinical development,” said Otsuka Holdings president Tatsuo Higuchi.
“ReCor’s statistically significant clinical results in the Solo trial are convincing biological proof that renal denervation with ReCor’s ultrasound-based system is effective in reducing blood pressure in patients with hypertension. We are excited to commercialize this technology, which has the potential to become one of the great technological advancements in hypertension treatment together with the ReCor team,” Kazumichi Kobayashi, global renal denervation project leader, said in a press release.
