Large acquiring device companies, in recent years, have increasingly adopted a "show me" attitude toward innovative device start-ups, requiring the small companies to minimize as much risk as possible by validating their products and markets, even going so far in some cases as to look for significant revenues before taking them into the fold. There is a notable exception in structural heart disease, however, where strategic acquirers have shown their willingness to pay up for companies in the transcatheter aortic heart valve segment before these start-ups have even gained FDA approval.
Edwards Lifesciences Corp. was the first to employ this strategy in 2003, buying Percutaneous Valve Technologies early in its development, for $125 million-plus and additional $30 million in earn-outs....
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