ARTICLE | Finance

Devices target drug space

Morganthaler exits Ardia; device play competes in big therapeutic markets

December 6, 2010 8:00 AM UTC

Morgenthaler Ventures' strategy of targeting ill-served major therapeutic markets with medical device alternatives paid off last month, with the sale of hypertension device play Ardian Inc. to Medtronic Inc. (NYSE:MDT) for $800 million plus commercial milestones.

"For us, the multiple is in the mid-teens up front and, if we hit all the milestone targets, it would be mid-20s," Morgenthaler partner Hank Plain told Ebb & Flow. "If we were to hit the company's internal projections, the deal could be worth as much as $1.3 billion in total."...