J&J's Ethicon Acquires NeuWave, Broadens Surgical Oncology Portfolio
Johnson & Johnson’s (J&J) Ethicon has acquired NeuWave Medical and its minimally invasive soft tissue microwave ablation technology, which is expected to broaden Ethicon’s expanding portfolio of surgical offerings, as well as address unmet needs in surgical oncology. Terms of the deal were not disclosed, but the acquisition satisfies J&J CEO Alex Gorsky’s goal of making strategic startup investments.
NeuWave Medical is a biotech startup, developing technology which began as research at the University of Wisconsin. The company’s ablation systems use focused microwave energy to eliminate lesions in highly targeted areas, and the therapy has been adopted by several top cancer centers in the U.S. to treat challenging cancers, including lung, liver, and kidney. Last year, NeuWave raised $25 million in venture capital to expand commercialization and R&D.
“NeuWave Medical’s Intelligent Ablation System is a proven technology for ablation of soft tissue lesions, including primary and metastatic lesions in the lung, liver, and kidney, which combined represent more than 11.6 million new patients each year,” said NeuWave CEO Dan Sullivan in a press release.
Last July, NeuWave received FDA clearance for ablation confirmation software, which surgeons could use during surgery to ensure proper probe placement and provide post-procedure imaging. The all-in-one system overlays pre- and post-procedure scans to confirm that the ablation is complete.
Michael del Prado, group company chairman of Ethicon, commented that the systems provided alternative therapies for patients not eligible for traditional surgery; and when combined with other therapies, the NeuWave systems may help hospitals reduce costs.
“The market-leading technology and expertise that NeuWave Medical has developed is minimally invasive and can be combined with other therapies to improve outcomes for patients,” said del Prado in a press release. “Additionally, for healthcare systems, this offering can potentially translate to a lower overall financial burden as well.”
J&J recently announced a corporate reconstruction strategy that will better position the company for a changing global market place. Gary Pruden, worldwide chairman of J&J’s medical devices, commented that the “bold steps” will increase investment in innovation, and Gorsky told Bloomberg that the company and its subsidiaries would be focusing on smaller startups.
In the past year, Ethicon invested $3.2M in bariatric surgery studies, which will collect data from five countries and investigate the effects of surgical intervention on Type 2 diabetes and obesity.
In December, Ethicon inked a deal with Verily to develop surgical robotic technology, in a joint venture called Verb Surgical, born of a previous deal with Google Life Sciences. Under the terms of the deal, Verily will contribute imaging and data analytics, while Ethicon will provide surgical instrumentation for the proposed surgical robot.