OrganOx's Remarkable £1.5 Billion Exit: A Milestone in UK Medtech

OrganOx Achieves Landmark Exit in UK Medtech

OrganOx, a pioneering medtech company based in Oxford, has successfully completed an exit valued at a staggering $1.5 billion, marking one of the most significant transactions in the UK’s medtech sector. This exit comes under the banner of BGF, the most active growth capital investor in the UK and Ireland, who has been instrumental in OrganOx's journey since its initial investment in 2019.

Significance of the Exit

The successful exit not only highlights OrganOx's impressive growth trajectory but also underscores the critical role of patient capital in advancing healthcare innovations in the UK. This strategic move has yielded BGF a remarkable £175 million in returns, showcasing a money multiple exit of 10x on their initial investment, along with an impressive internal rate of return (IRR) of 69%. Such figures are not only a testament to the innovative technology that OrganOx has developed but also reflect the strong backing needed for advancements in the healthcare sector.

OrganOx’s Innovation

Founded out of the University of Oxford, OrganOx is best known for its groundbreaking development of the metra device, which represents the world’s first fully automated system for liver preservation. This technology allows donor livers to remain in a viable condition outside the human body for up to 24 hours, significantly enhancing the chances of successful transplants across the globe. With over 6,000 liver transplants utilizing this technology, OrganOx has made a significant impact on patient outcomes, increasing the number of viable organs available for transplantation.

Investment Journey with BGF

BGF’s involvement with OrganOx has been characterized by multiple funding rounds, with an investment of £20 million earlier this year marking a pivotal point in their collaboration. They've participated in every subsequent funding round, reinforcing their position as the largest shareholder in the company. Alongside BGF, other early investors such as Longwall Ventures and Oxford Investment Consultants also played vital roles, with Lauxera Capital Partners and HealthQuest joining later in support.

Tim Rea, co-head of BGF's early-stage investing, emphasized that this exit exemplifies the potential of patient growth capital. He stated that backing innovative companies like OrganOx, particularly in the hardware and manufacturing complex spaces within medtech, remains a priority for BGF as they strive to impact the underserved areas of this sector.

Future Prospects with Terumo Corporation

Following this exit, OrganOx will continue its operations as a standalone division within the Terumo Corporation, a global healthcare company. This move is anticipated to aid in further scaling their transplantation technology, leveraging Terumo’s expansive infrastructure to extend their reach and benefit more patients worldwide.

Oern R. Stuge, MD, MBA, and Executive Chairman of OrganOx, expressed optimism about this transition, noting it would enhance the adoption of their innovations. With BGF’s long-term commitment as an investor and board member since their initial investment, the company has experienced unparalleled growth and recognition in the medtech sphere.

A Bright Future for BGF and UK Medtech

As BGF continues to support a range of medtech companies, including notable enterprises like Cyted, TidalSense, and Entia, its steadfast dedication reflects a broader strategy to boost investments in the UK’s innovative sectors. With a recent commitment of £500 million pledged to early-stage deep tech and life sciences businesses, BGF is positioned to drive continued advancement in healthcare and other high-potential sectors.

In conclusion, the successful exit of OrganOx not only highlights the transformative impact of innovative technologies in patient care but also sets a precedent for future investments in the UK’s medtech landscape. BGF’s commitment to nurturing such pioneering companies showcases a willingness to lead the charge in health innovation, ultimately enhancing outcomes and opportunities for patients around the globe.