Catheter Precision (NYSE:VTAK) announced that it has engaged a strategic advisor to formally put its cardiac electrophysiology business up for sale.
The company expects the marketing process for the business to create shareholder value by monetizing its legacy medical device assets while sharpening focus on its Flyte aviation platform.
Fort Mill, South Carolina-based Catheter Precision acquired Flyte last month, seeking to transition from medical devices into time-efficient regional air mobility.
This marks the latest transitional move for the company. Earlier this year, it agreed to divest its atherectomy catheter technologies to an unnamed strategic acquirer.
When it sold the atherectomy technologies, Catheter Precision said it aimed to continue to pursue advances in electrophysiology following its reverse merger with Ra Medical in 2023. The deal was initially announced in September 2022. Under the terms of the agreement, Catheter Precision became a wholly-owned subsidiary of Ra Medical with a focus on the cardiac electrophysiology market.
However, the company now looks set to move on from the cardiac EP systems as well. That portfolio includes the LockeT device and VIVO imaging system.
LockeT is a suture retention device for wound closure after percutaneous venous punctures. VIVO (view into ventricular onset), a non-invasive 3D imaging platform, enables the identification of the origin of ventricular arrhythmias pre-procedure.
David Jenkins, CEO of VTAK, said:
“We believe that our cardiac electrophysiology portfolio may provide significant value to larger, better capitalized, companies than our own that is not reflected in our own company’s current market capitalization. Both LockeT and VIVO are being used by surgical and recovery teams in many hospitals in the U.S. and internationally including leading teaching hospitals. We believe LockeT provides multiple competitive advantages including large-bore closure capability, cross-functional applications spanning electrophysiology, structural heart, and interventional radiology, and lower cost per procedure. Both our product lines of LockeT and VIVO, our ventricular mapping product, have now gained FDA market clearance as well as the CE mark.
“With the infrastructure of a larger strategic acquirer, these assets have the potential to have their usage significantly increase within the broader cardiovascular industry. We look forward to the potential value that this strategic process may bring to our shareholders. By separating and monetizing these assets, we believe that over time our company will become valued in the stock market as a pure-play aviation business. Our objective is straightforward- drive shareholder value through execution, transparency, and disciplined capital allocation.”
