Anteris Technologies (ASX: AVR) Surges 30% on Medtronic Deal- Is It a Buy?

Anteris Technologies Gains Momentum with Medtronic Partnership

Anteris Technologies (ASX: AVR) jumped more than 30% after announcing a deal that could change its future. The Australian heart valve company secured a massive US$290 million funding package. This included US$200 million from the public and a US$90 million direct investment from Medtronic, the world’s largest medical device maker. Medtronic will initially own about 16% of the company, with room to grow to nearly 20%. Notably, they are paying US$5.75 per share, the exact same price as everyday investors. For a company worth around A$420 million with no commercial revenue yet from its flagship DurAVR technology, getting a US$33 billion industry leader to invest at full price is a major vote of confidence.

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Why Medtronic’s US$90M Investment Changes Everything for Anteris Technologies

Medtronic does not throw money around carelessly. This is a company with thousands of engineers, clinical experts, and regulatory specialists who study potential investments in detail. The fact that they agreed to pay the same price as regular investors, with no discount, tells us their team believes the technology is worth it.

We believe this deal could be the first step towards something bigger. Medtronic has a long history of buying smaller device companies once they prove their products work. By taking a near-20% stake now, Medtronic positions itself for a future takeover if DurAVR succeeds.

Beyond money, Anteris Technologies now has a partner with deep experience in getting heart devices through FDA approval and into hospitals worldwide. This expertise could prove invaluable as DurAVR moves towards commercialisation.

DurAVR’s Clinical Promise: What Medtronic Sees in the Technology

So what exactly is DurAVR? It is a replacement heart valve for patients with aortic stenosis, a condition where the heart valve becomes too narrow and blocks blood flow. This affects millions of people, mostly elderly, and can be life-threatening if untreated.

What makes DurAVR different is its design. Most replacement valves are made from three separate pieces stitched together. DurAVR uses a single piece shaped to copy how a healthy human heart valve works. In trials involving 100 patients, 97% avoided a problem called prosthesis-patient mismatch, where the new valve is too small for the patient’s needs. In comparison, current-generation TAVR (Transcatheter Aortic Valve Replacement) devices typically achieve 65-89% on this measure, according to historical clinical data. That gap matters because a mismatch has been linked to valve failure and worse long-term outcomes.

The valve uses Anteris’ ADAPT tissue technology, which has been FDA-cleared and used in over 55,000 patients worldwide. The company’s PARADIGM trial, which directly compares DurAVR against existing products, is now underway and fully funded thanks to this capital raise.

The Investor’s Takeaway: Should You Buy AVR After This Deal?

This deal changes the investment case in three important ways. First, the US$290 million removes funding risk, and the company can run its pivotal trial without raising more money. Second, Medtronic’s involvement provides validation from an industry leader. Third, if DurAVR succeeds, Medtronic is the obvious buyer.

However, this remains a high-risk opportunity. Anteris Technologies has no commercial revenue, and the PARADIGM trial results will make or break the company. If the data disappoints, the stock could fall sharply regardless of Medtronic’s backing.

Interestingly, the stock has previously fallen on good clinical news, suggesting investors were sceptical. This financing marks the first time positive news triggered a strong rally, indicating the market values financial security over clinical milestones at this stage.

Our view: For investors comfortable with biotech risk, the Medtronic partnership makes AVR more attractive than it was last week. Conservative investors should wait for trial results.