BGF, the UK and Ireland's most active growth capital investor, today announces the successful exit of OrganOx, the Oxford-based medtech company whose pioneering liver perfusion technology has transformed outcomes for transplant patients worldwide.
The deal represents one of the largest exits of a UK medtech company, at $1.5bn (the total transaction value is approximately $1.5bn). It also marks BGF's largest-ever return, generating £175m of proceeds.
The deal has driven a 10x money multiple (MM) exit on BGF's initial investment and an overall IRR in the region of 69 percent. BGF first invested in OrganOx in 2019 and has provided seven rounds of investment, including a £20m 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 the later stages of development, OrganOx was fortunate to attract capital from Lauxera Capital Partners (US/Fr), HealthQuest (US) and others joining in support.
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. The business will continue to operate from Oxford as a standalone division within global healthcare company Terumo Corporation, following the completion of the transaction.
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."
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: "At a ten-figure valuation, we are incredibly proud to have played a key role in one of the UK's largest medtech exits.
“It reflects a remarkable achievement by the OrganOx team, and we are especially proud that this success is tied directly to a positive impact in 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." Alongside OrganOx, BGF has backed several high-potential UK medtech companies including Cyted, which uses AI-enabled diagnostics for early cancer detection; TidalSense, which develops innovative respiratory monitoring technology; and Entia, a home blood testing platform supporting cancer care.
The deal follows BGF's recent exit from Panthera Biopartners, a leading clinical trials site management organisation. During BGF's investment period, Panthera's revenue more than doubled and the business expanded its national footprint and therapeutic coverage.
BGF is one of the largest and most experienced growth capital investors in the UK and Ireland, backing entrepreneurs and innovators, typically providing initial investments of between £3m and £30m in high potential businesses. BGF recently pledged £500m to early-stage deep tech and life sciences businesses as part of its wider £3bn UK-wide strategy to support high-potential companies over the next five years.