OrganOx achieves one of the UK’s largest medtech exit to date

OrganOx, the Oxford-based medtech company
behind pioneering liver perfusion technology that has transformed transplant
outcomes worldwide, has been acquired in a deal valued at approximately $1.5
billion. The transaction also delivered BGF’s biggest return to date,
generating £175 million in proceeds, a 10x money multiple on its original
investment, and an IRR of around 69 per cent.

Founded out of the
University of Oxford, OrganOx developed the world’s first fully automated
device for liver preservation, metra,
which enables donor livers to be maintained in a functioning state outside the
human body for up to 24 hours. The technology, used in more than 6,000 liver
transplants to date, has significantly increased the number of viable organs
available for transplant and improved patient outcomes.

With BGF’s support,
OrganOx has scaled into a world-leading medtech company. Following its
acquisition, it will continue to operate from Oxford as a standalone division
of global healthcare group Terumo Corporation.

Tim Rea, co-head of
early stage investing at BGF and a member of the OrganOx board since 2019,
said:

OrganOx
has transformed liver transplantation and built a world-class position in
medtech. 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.

BGF
was built to deploy capital into underserved parts of the investment market. In
early stage medtech, we have gone further by deliberately backing companies
with significant hardware and manufacturing complexity. Our capital and
commercial expertise made us ideally placed to take on this challenge and
OrganOx is a powerful example of why that strategy matters.

BGF first invested
in OrganOx in 2019 and has provided seven rounds of investment, including a £20
million commitment earlier this year. BGF participated in each of the funding
rounds following its initial investment and is the company’s largest
shareholder.

Other early backers
of the company included Longwall Ventures and Oxford Investment Consultants. In
its later growth stages, the company secured backing from Lauxera Capital
Partners (US/FR), HealthQuest (US), and additional supporters.

Oern R. Stuge, MD,
MBA, and Executive Chairman of OrganOx, said:

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.

Thank you to BGF
who have shown conviction and support as an investor and board member since
their first investment. Their capital and leadership have enabled the value
creation inherent in today’s announced $1.5bn transaction.

Andy Gregory, CEO
of BGF, said that achieving a ten-figure valuation marks one of the UK’s
largest medtech exits. He highlighted the OrganOx team’s remarkable achievement
and stressed that the success is all the more significant because it directly
benefits patient outcomes:

By combining early
and growth-stage investing across multiple sectors, BGF has created the right
blend to deliver strong, sustainable and repeatable returns. Our ambition now
is for more capital to flow into the UK’s most promising companies — whether through
co-investments with international, specialist investors, or domestic sources.