Our Portfolio - The Vertical Group - medical device / biotechnology venture capital

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Cardiothoracic Systems, Inc. (founded in 1994) pioneered the field of minimally invasive cardiac surgery, with the development of a revolutionary system that permits heart surgery to be performed while the heart is still beating. The company was acquired for nearly $250 million by Guidant Corporation in 1998 and is now a division of Guidant with $50 million in annual revenue. Mr. Lasersohn conceived the idea for the company, led the founding round and was a member of the Board of Directors.

Cardiovascular Imaging Systems, Inc. (founded in 1988) developed the first intravascular ultrasound catheter that enabled cardiologists to image the interior of a coronary artery during procedures such as balloon angioplasty and stenting. Vertical Group participated in the early stage venture rounds of the company and was represented by Mr. Lasersohn on the Board of Directors until the sale of the company for over $100 million to Boston Scientific Corporation in 1994.

Ensure Medical (founded in 2002) developed a proprietary technology for the closure of femoral artery incisions based on a biodegradable closure device and a unique delivery system. Ensure was acquired by Johnson & Johnson in 2006. The Vertical Group was founding investor in Ensure Medical and Yue-Teh Jang served as the company’s CEO.

E.P. Technologies, Inc. pioneered the catheter-based treatment of cardiac arrhythmia and was the first company to receive FDA approval for a cardiac arrhythmia ablation system in 1994. Its technology has revolutionized the treatment of these debilitating and potentially life threatening arrhythmia and is now used to treat over 100,000 patients per year. The Vertical Group led the second round financing for the company and was represented on the Board of Directors by Mr. Lasersohn. E.P. Technologies was acquired by Boston Scientific Corporation for approximately $200 million in 1995.

Integrated Vascular Systems designed and developed innovative catheter-based, nitinol "clip" technology for tissue apposition. Following an initial clinical evaluation of it STARCLOSE system for the closure of femoral artery incisions, Abbott Laboratories acquired IVS in July, 2003 for over $100 million in initial and future consideration. In December 2005, Abbott received FDA approval for the STARCLOSE system. Jack W. Lasersohn and Yue-Teh Jang were members of the IVS Board of Directors prior to its acquisition by Abbott Laboratories and Mr. Jang also served as its CEO.

Kyphon Corporation was a pioneer developer of technology to facilitate the minimally invasive reduction and repair of compression bone fractures (i.e. fractures involving crushed or collapsed bone. Spinal surgeons utilize the KyphX system to treat vertebral body compression fractures, a common osteoporosis-related injury suffered by the elderly. Kyphon was acquired in 2007 by Medtronic in a transaction valued at $3.9 billion.

OsteoBiologics Inc. developed proprietary and patented bioabsorbable polymer materials utilized for the repair and replacement of injured bone, cartilage, and other skeletal tissues. During 2003 OBI received its first FDA marketing clearances. In July, 2006 OBI was acquired by Smith & Nephew for approximately $75 million. Richard B. Emmitt served on the OBI Board of Directors.

SciMed Life Systems was one of the pioneers in the development of products used in the procedure called PTCA or balloon angioplasty which treats blocked coronary arteries. The predecessors of the Vertical Group led the early financings of the company and were its principal shareholders. The Vertical Group was represented on its Board of Directors by Richard Emmitt. SciMed was acquired by Boston Scientific Corporation in 1995 in a transaction pursuant to which the Shareholders of SciMed acquired approximately one third of the stock of combined companies. At the time of the closing the transaction had a value of approximately $1.0 billion.

Spinecore, Inc. was a pioneer in the field of implantable artificial discs for the treatment of degenerative spine disc disease. The company's FLEXICORE artificial disc is a "metal-on-metal" design that is distinguished from other devices based on its insertion ease and flexibility; physiologic range of motion; and reduced risk of dislocation and injury to adjacent spine anatomy. In 2004 Spinecore was acquired by Stryker Corporation for initial ($120 million) and future milestone-based ($240 million) payments of up to $360 million.

Support Systems International developed the Clinitron Bed in the early 1980’s and then successfully marketed it as a fully integrated prescription therapy for the treatment of hospitalized patients with serious illnesses such as burns, severe orthopedic trauma or other conditions requiring extended rest, and the attendant risk of development of decubitus ulcers. The Clinitron Bed provides an air fluidized resting surface that lowers infection risks and distributes weight over a patient’s entire body area. Patrick Paul was founder, CEO and chairman of SSI, and the predecessors of The Vertical Group financed the Company at all stages until its sale for over $450 million to Hillenbrand Industries in 1986.

Wright Medical Group is an orthopedic company with a broad product line including leading positions in extremity joint prosthesesand biologic and synthetic bone graft materials. The Vertical Group was a participant in both the recapitalization and acquisition financings that formed Wright Medical Group. Richard B. Emmitt served on Wright’s Board of Directors from 1999 to 2006.

Xomed Surgical Products is the largest provider of advanced surgical products focused on the ENT markets. Vertical was an early stage investor in Merocel, the predecessor company to Xomed. In 1994, the Xomed division of Bristol Meyers-Squibb was acquired in a transaction financed by The Vertical Group and Warburg Pincus. Richard Emmitt was a member of the Board of Xomed from 1995 until its sale to Medtronic for approximately $800 million in 1999.