Medical device company cuts 70% of staff in push to meet Medtronic obligations
Acutus Medical, the California-based healthcare technology company focused on electrophysiology devices, has announced significant downsizing that will cut its workforce by approximately 70%. The goal of the move is to focus exclusively on manufacturing and distributing left-heart access devices as part of an agreement with Medtronic that was first signed in 2022.
The Medtronic distribution deal includes the AcQCross line of sheath-compatible septal crossing devices, AcQGuide MINI integrated crossing device and sheath, AcQGuide FLEX steerable introducer with integrated transseptal dilator and needle and AcQGuide VUE steerable sheath. This will continue to be Acutus Medical’s only source of revenue.
Downsizing is expected to result in $1.4 million to $1.8 million in pre-tax downsizing and exit-related charges. This includes payments made to outgoing employees, retention bonuses to other employees assisting with the downsizing and contract closing costs.
As of Sept. 30, Acutus Medical had $12.6 million in cash, cash equivalents, marketable securities and restricted cash. The company believes those resources, in addition to future payments as part of the Medtronic agreement, will be enough to pay off its outstanding debts and move forward.
“Following an extensive strategic review by the company’s board of directors, we are taking the hard but necessary steps to reduce the size of our organization while complying with our remaining obligations to Medtronic for the production of left-heart access products,” Shaden Marzouk, MD, Acutus Medical chairperson of the board, said in a statement announcing the news.
“The operational downsizing impacts our team, and it is difficult to part with our valued and highly talented colleagues who have made substantial contributions to our company,” added Takeo Mukai, MBA, Acutus Medical CEO and CFO. “I want to thank each one of them for their dedication to Acutus and our mission.”
Back in November, Acutus Medical shared its financial results from the third quarter of 2024. This included revenue of $5.3 million, up 156% compared to 2023, and an operating income for continuing operations of $100,000. The company announced at the time that it would “no longer provide financial guidance.”
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.