OrganOx Achieves Landmark Exit in Medtech Sector, Setting New Records for BGF

OrganOx's Remarkable Exit

OrganOx, an innovative medtech company operating out of Oxford, has recently made headlines with its significant exit valued at $1.5 billion. This monumental achievement has set a new benchmark in the UK's medtech sector, yielding record returns for its investor, BGF (Business Growth Fund). Established in 2011, BGF has become the most active growth capital investor in the UK and Ireland, focusing on providing patient capital to promising ventures in underserved investment markets.

The Journey to Success

Founded in 2008, OrganOx was born out of groundbreaking research at the University of Oxford. The company has developed a pioneering liver preservation technology known as metra, which enables donor livers to be stored in a functional state for up to 24 hours outside the human body. This technology has already been utilized in over 6,000 liver transplants, significantly increasing the availability of viable organs and improving patient outcomes.

BGF first invested in OrganOx in 2019 and has since participated in seven funding rounds, reflecting a steadfast commitment to the company. Its latest investment earlier this year amounted to £20 million, making it the largest shareholder and a key player in every financial round. The company has also garnered support from other investors, including Longwall Ventures, Oxford Investment Consultants, and Lauxera Capital Partners.

Record Returns and Future Growth

The successful exit not only generated £175 million for BGF but also delivered an impressive 10x money multiplier (MM) on BGF's original investment, yielding an internal rate of return (IRR) of approximately 69%. This exit stands as the largest return ever recorded by BGF, highlighting the financial vibrancy of the medtech sector.

According to Tim Rea, BGF's Co-Head of Early Stage Investing and a member of OrganOx’s board since 2019, the company has fundamentally transformed liver transplantation and established a world-class position in the medtech industry. The exit illustrates the crucial role of patient capital in the sector, particularly when institutional investments are scant. As OrganOx transitions to operate as an independent subsidiary within Terumo Corporation, its innovative technology promises to reach even more patients globally.

A Vision for the Future

Oern R. Stuge, Executive Chairman of OrganOx, emphasized that the partnership with BGF has not only shaped the company’s trajectory but also broadened the impact of its transplantation technology. The collaboration has empowered BGF to adopt a proactive investment strategy within the high-complexity domain of medtech,
paving the way for the continued support of innovation in this rapidly evolving landscape.

Furthermore, CEO Craig Marshall praised BGF for its unwavering support, reflecting on how BGF's initial investment and a dedicated board member have ensured that OrganOx would not face funding shortages as it progressed through its development phases. This collaborative spirit underscores the synergy between patient capital and innovation, affirming that OrganOx's journey is far from over.

Conclusion

With more than 600 companies backed and an investment amounting to £4.5 billion, BGF’s track record demonstrates its crucial role in fostering entrepreneurial growth in the UK and Ireland. Following this exit, BGF is set to redirect efforts towards supporting more promising ventures, initiating a £500 million funding plan dedicated to early-stage companies in key sectors such as Deep Tech and Biosciences. The success of OrganOx is not merely a victory for its stakeholders but a beacon of hope for the future of medical technology and patient care excellence in the UK and beyond.