PTV’s 2016 Year in Review
A LOOK BACK ON THE SUCCESSES AND ACHIEVEMENTS OF 2016
Happy New Year!
Another year has come and gone. 2016 was a whirlwind year for PTV, complete with exits, mergers, and exciting new investments. We were proud to expand PTV’s capabilites with world class talent and continue to build out our brand in the healthcare community. Highlights from 2016 can be found below.
Once again we would like to take this time to thank you, our investors, our entrepreneurs, and our partners, for your ongoing support that makes it possible for PTV to continue to enable healthcare innovation and positively impact patients’ lives worldwide. We have many exciting things to look forward to in the coming year and we look forward to sharing them with you.
May your 2017 be full of good health and good cheer.
All the best,
The PTV Team
In January 2016, CryoLife, Inc. (NYSE: CRY) (“CryoLife”), a leading medical device and tissue processing company focused on cardiac and vascular surgery, completed its acquisition of On-X Life Technologies (“On-X”) for $130 million. The acquisition proceeds were comprised of approximately 70% cash and 30% CryoLife common stock. Following the acquisition CryoLife revenues for Q3 2016 increased 23% to $45.3 million compared to $36.7 million for Q3 2015 and revenues for the first nine months of 2016 increased 28% to $135.4 million, compared to $106.1 million for the first nine months of 2015. As of January 4, 2016, CryoLife was trading at $19.15 per share, representing a 105% price increase since closing the On-X acquisition. CryoLife credited its acquisition of On-X and the strong performance of On-X valves in several key markets as one of the key drivers of its growth and strong performance during 2016.
In November 2016, PTV announced its investment in Intuity Medical, Inc. (“Intuity”), a privately-held company developing innovative technologies for diabetes management. Diabetes represents an $8 billion and growing worldwide market opportunity with a $2.4 billion diabetes industry in the United States alone. The Sunnyvale, CA company is know for its POGO® Automatic Blood Glucose Monitoring System, the first “all-in-one” blood glucose testing device for patients with diabetes. The FDA Approved, self-contained, 10-test cartridge eliminates the handling and disposal of test supplies while also eliminating the exposure of blood and sharp objects before, during, and after testing. PTV led the $55 million Series 3 preferred stock financing for Intuity which will enable U.S. commercial launch of the POGO System.
In December 2016, Apollo Endosurgery announced that it had completed its merger transaction with Lpath, Inc (“Lpath”, NASDAQ: LPTN). In connection with the closing of the merger, Lpath was renamed Apollo Endosurgery and began trading on the NASDAQ Global Market under the symbol “APEN” on December 30, 2016. Stockholders of Lpath retained 4.1% of the combined company while stockholders of Apollo Endosurgery represent 95.9% of the combined company. PTV remains proud to partner with and continue to support the important work being done to advance the interventional treatment of obesity by the team at Apollo Endosurgery. The full press release regarding the merger may be found here.
As part of PTV’s ongoing initiative of serving entrepreneurs as valued thought leaders and supporting the healthcare ecosystem, 2016 saw PTV’s first foray into Austin’s SXSW, leading two panels for the conference: How to Raise Capital for Your Healthcare Company featuring PTV Managing Director Rick Anderson along with Kleiner Perkins’ Dana Mead, Norwest Ventures’ Casper de Clerq, and Austin Chamber’s Michele Skelding; and We the People: Healthcare & the 2016 Election, featuring PTV Partner Lauren Chauret and Jane Adams, Vice President, US Federal Government Affairs, Johnson & Johnson.
In October 2016, SXSW announced Collaborative Innovation in the Digital Health Age as one of its Featured Sessions for March 2017. Presented by PTV Healthcare Capital, speakers include Alex Gorsky, Chairman & CEO of Johnson & Johnson; Ginni Rometty, Chairman, President, and CEO of IBM Corporation; and Dr. Clay Johnston, Dean of UT Austin’s Dell Medical School. Stay tuned for more information on this exciting event!
In October 2016, PTV announced the expansion of its world class advisory network with the additions of Kim Bridges, the President and CEO of Halt Medical who brings nearly 20 years of medical device experience in cardiology, radiology, vascular surgery, neurology and women’s health, and Bill McClellan, an experienced Finance Executive and CFO, most recently for On-X Life Technologies. John Heller, an executive leader with expertise in operations, finance and supply chain management across a variety of consumer package goods and technology based industries, was brought on as an Entrepreneur in Residence. Together the three seasoned leaders bring to PTV exceptional capabilities and deep industry expertise that will deliver tremendous resources across our portfolio network.