Record-Breaking MedTech Exit for OrganOx: A Game Changer for UK Innovation

OrganOx Achieves Landmark $1.5 Billion Exit

OrganOx, a pioneering medtech firm based in Oxford, has successfully executed one of the largest exits in the UK medtech sector, securing a staggering $1.5 billion valuation. This milestone represents not only a financial success for the company but also a significant achievement for BGF (British Growth Fund), which has provided essential support to OrganOx since its inception.

The Journey to Success

Founded out of the University of Oxford, OrganOx has made a significant impact in the field of liver transplantation with its innovative perfusion technology. Their flagship product, the metra device, enables the preservation of donor livers in a functioning state outside the body for up to 24 hours. This advancement has drastically improved the viability of organs available for transplant, transforming the outcomes for countless patients around the world.

BGF initially invested in OrganOx back in 2019 and has since committed to seven rounds of funding, underscoring its belief in the company’s potential. Their most recent contribution of £20 million earlier this year was pivotal in enabling OrganOx to expand its capabilities.

As a large stakeholder, BGF witnessed the company achieve remarkable growth, resulting in a return of £175 million from this exit. The investment proved highly profitable, yielding a 10x money multiple and an impressive internal rate of return (IRR) of around 69%. This exemplary performance illustrates the crucial role of patient capital in nurturing innovation, particularly in sectors that present high levels of complexity and risk, such as medtech.

Strategic Growth Through Innovation

Under the leadership of CEO Craig Marshall, who transitioned into his role in 2017, OrganOx has focused on developing its technology platform and expanding its global footprint. Key members of the leadership team, including CFO Stephen Deitsch and Global CCO Rupa Basu, have played integral roles in navigating the complexities of scaling the company and enhancing its market presence, particularly in the U.S.

The successful exit signifies not just financial returns but also a validation of the strategic vision that BGF and OrganOx shared. Tim Rea, co-head of early stage investing at BGF, highlighted the significance of patient growth capital in such a high-risk environment, emphasizing the need for continued investment in innovative businesses before they reach a stage of de-risking.

Collaborating with Terumo

Following the acquisition, OrganOx will operate as a standalone division within Terumo Corporation, a global healthcare company. This collaboration is expected to facilitate the broader adoption of OrganOx's technology, leveraging Terumo's extensive infrastructure to reach and benefit an even larger patient population around the globe.

Oern R. Stuge, MD, MBA, Executive Chairman of OrganOx, anticipates that this partnership will enhance their technological platform and promote wider access. He acknowledged BGF's enduring support, citing their conviction as a vital factor in achieving this transaction’s success.

BGF's Continued Commitment to Innovation

Looking ahead, BGF remains optimistic about the future of investments in the UK medtech space. Andy Gregory, CEO of BGF, expressed pride in their involvement in this significant exit, stating that it reflects a remarkable achievement for the OrganOx team and highlights the positive impact on patient outcomes. BGF aims to channel more capital into promising UK companies, thereby fostering a vibrant ecosystem for innovation and growth in healthcare.

In conclusion, OrganOx's successful exit not only marks a remarkable chapter for the company and its investors but it also heralds a new era for the UK medtech industry. With continued investment and support, the potential for future innovations in healthcare is limitless.