BGF Achieves Major Milestone with OrganOx Medtech Exit

BGF Achieves a Key Exit with OrganOx

The recent exit of OrganOx marks a significant chapter in the UK medical technology landscape. With a valuation reaching $1.5 billion, this achievement stands as one of the largest exits in UK medtech history. The exit highlights the role of patient capital in the growth of innovative healthcare solutions.

The Impact of OrganOx's Technology

Founded from the esteemed University of Oxford, OrganOx is renowned for its groundbreaking liver preservation technology. The company developed the metra, the world’s first fully automated liver perfusion device, which has revolutionized organ transplant outcomes. This innovative device keeps donor livers viable for up to 24 hours outside the human body, thus managing to significantly enhance the number of organs available for transplantation. As of now, over 6,000 successful liver transplants have utilized this pioneering technology.

Background on BGF and Its Involvement

BGF, one of the most active growth capital investors in the UK and Ireland, initially invested in OrganOx in 2019. Over the years, BGF has committed substantial funding across seven rounds, including an impressive £20 million investment recently. This consistent financial backing has cemented BGF's position as OrganOx's largest shareholder and a pivotal player in the company's growth trajectory.

Returns and Financial Performance

This recent exit not only underscores BGF’s illustrious investing strategy but also represents its largest return to date, generating £175 million in proceeds. With a remarkable 10x money multiple exit and an internal rate of return (IRR) approximating 69 percent, this venture illustrates the potential for high returns within the medtech sector.

Future Plans and Global Expansion

Following the acquisition, OrganOx will continue its operations from Oxford as a standalone division of Terumo Corporation, a global healthcare provider. This partnership is poised to broaden the reach of OrganOx’s technologies and significantly enhance patient care on a larger scale. The collaboration aims to leverage Terumo's extensive global infrastructure, benefitting patients across the globe.

BGF's Commitment to Innovation

Tim Rea, BGF's co-head of early-stage investing, reflects on the transformation that OrganOx has brought to liver transplantation, stating that such achievements highlight the necessity for patient growth capital. He emphasizes how critical it is to support innovation within a sector that has historically faced funding challenges.

BGF’s Broader Impact on UK Medtech

BGF has made a commitment not only to OrganOx but to numerous other high-potential UK medtech companies. This includes investments in Cyted, TidalSense, and Entia—companies that aim to address significant challenges in cancer detection, respiratory monitoring, and home healthcare, respectively. These efforts display BGF’s dedication to fostering advancements that have a meaningful impact on patient outcomes.

Conclusion on Investment Landscape

As BGF wraps up this significant transaction, the company aims to propel additional capital investments into promising UK enterprises. Their commitment remains strong, as they pledge £500 million toward early-stage deep tech and life sciences ventures, further contributing to the burgeoning healthcare landscape in the UK.

Frequently Asked Questions

What is OrganOx known for?

OrganOx is recognized for its innovative liver preservation technology, specifically the metra, which allows donor livers to be maintained outside the human body for transplants.

What was the valuation of OrganOx's exit?

OrganOx's exit was valued at an impressive $1.5 billion, marking one of the largest in the UK's medtech industry.

Who were the key investors in OrganOx?

The main investor in OrganOx was BGF, who provided funding throughout the company's growth, alongside other early investors like Longwall Ventures.

What is the significance of BGF's investment strategy?

BGF’s investment strategy showcases the importance of patient capital in nurturing growth in sectors that require significant initial investment, such as medical technology.

How will Terumo influence OrganOx post-exit?

Terumo's acquisition is set to enhance OrganOx's global presence and improve patient outcomes by leveraging Terumo's infrastructure and resources.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

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