Otsuka Holdings, Otsuka Medical Devices, and ReCor Medical have signed a merger agreement pursuant to which Otsuka Holdings will acquire the remaining shares in ReCor from its current holders. The transaction is subject to approval by ReCor’s shareholders.
Otsuka Holdings’ acquisition follows the announcement by ReCor that the US FDA has given its approval to initiate a pivotal clinical study, RADIANCE II, for the evaluation of the Paradise renal denervation system for the safe and effective reduction of blood pressure in patients with hypertension. Previously, data from RADIANCE-HTN SOLO demonstrated a statistically significant reduction in blood pressure with the Paradise sysmte in hypertensive patients.
Following the acquisition, according to a press release, ReCor plans to continue to develop and evaluate the Paradise System in patients with hypertension in preparation for worldwide commercialisation, as well as explore its use in additional clinical applications such as heart failure, kidney disease and metabolic disorders, while also building the Otsuka Medical Devices’ incubation and clinical development hub in the USA and Europe.
Andrew Weiss, president and CEO of ReCor, says: “We are very encouraged by the results of our clinical trials with the Paradise System, which have been conducted in the USA 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.”
Tatsuo Higuchi, president and representative director of Otsuka Holdings, says: “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.”