Japan’s Terumo acquires Oxford health tech in $1.5bn deal – UKTN

OrganOx, a University of Oxford spinout that has developed an automated device to preserve organs in transit, has been acquired by Tokyo-based medical manufacturer Terumo for $1.5bn (£1.1bn).

The company, which was spun out of the university in 2008, is known for creating a transportation device for organs used in liver transplant surgeries that offers a unique approach compared with traditional methods.

Typically livers are preserved in cold temperatures to prevent decay. OrganOx, however, has developed a device that mimics the warm environment of the human body, not only preserving the condition of the liver but also allowing it to continue being functional during the preservation period.

The firm raised £25m in a funding round in 2023, at the time considering using the funds to progress towards an initial public offering.

Instead the company has opted for an acquisition to Japanese medical giant Terumo. Founded over a century ago, Terumo employs more than 30,000 people and operates in over 160 countries and regions.

“Today’s announced transaction is expected to expand the adoption of our transplantation technology platform by leveraging Terumo’s global infrastructure to benefit more patients around the globe,” commented OrganOx executive chairman Oern R Stuge.

The deal is one of the biggest exits for a British medtech firm and the largest-ever return for backer the Business Growth Fund (BGF).

The investment firm backed OrganOx in 2019 and has since provided seven rounds of investment to the company. The exit will net BGF a return of £175m.

“OrganOx has transformed liver transplantation and built a world-class position in medtech,” said Tim Rea, co-head of early stage investing at BGF.

“In a sector where institutional capital is constrained, this exit highlights the importance and potential of patient growth capital, and a willingness to back innovation before it is de-risked — something many investors find difficult to do in this still nascent market.”

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