updated: 8/14/2012 7:52:56 AM

Hoosier VC Paves Way For Big Acquisition

InsideINdianaBusiness.com Report

A medical device company funded in part by Indiana University Health's venture capital arm CHV Capital has been acquired for $75 million. California-based MindFrame Inc. makes blood clot removal instruments and was recently purchased by Massachusetts-based Covidien (NYSE: COV).

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August 13, 2012

News Release

INDIANAPOLIS, Ind. – A medical device company of CHV Capital, Indiana University Health's venture capital arm, was recently acquired by a larger entity due in part to a network of Indiana-based partnerships and investments in the life sciences.

MindFrame Inc., a California-based company that specializes in developing medical devices designed to optimize rapid perfusion and clot removal in the treatment of patients suffering from ischemic stroke, was recently acquired for $75 million in cash by Covidien, a leading global provider of healthcare products and a recognized innovator in medical devices. The acquisition is expected to broaden Covidien’s product offerings for stroke treatments.

MindFrame's investor group included CHV Capital and SV Life Sciences, a global venture capital fund supported, in part, by Indiana investors through the BioCrossroads INext Fund – a $58 million venture capital fund of funds which includes investments from Eli Lilly and Company, the Indiana State Teachers Retirement Fund (TRF), Indiana University, Purdue University, University of Notre Dame and the Richard M. Fairbanks Foundation.

"While the financial outcome of this transaction is pleasing, it has been even more gratifying to connect such a broad set of local partners with a world class technology and team," said Kyle Salyers, managing director of CHV Capital and board advisor to MindFrame.

"Neuroscience is a strategic priority for IU Health and for our region, which is why we continue to invest in innovative and effective therapies designed to treat patients with serious neurological disorders. The acquisition of MindFrame is a great example of how strong local collaboration can connect to innovation from anywhere and create shared clinical, educational and economic value."

SV Life Sciences, headquartered in Boston, initially established local market connections through its relationship with the INext Fund, which is also a capital pool that invests in venture capital funds focused on the life sciences, thus encouraging and facilitating direct investment in Indiana life sciences opportunities. "Our relationship with CHV Capital and IU Health became an important element of creating value in the business and was a natural extension of our fund of fund relationship with BioCrossroads and INext," said David Milne, managing director, SV Life Sciences. "We are pleased to deliver a nice return to our Indiana investors and to have engaged Indiana talent and resources in the process."

In addition to local capital sources, students from Rose Hulman Institute of Technology, via Rose Hulman Ventures, assisted MindFrame with engineering improvements to the manufacturing of its core device which allows physicians to treat patients who develop blood clots in the vascular system of the brain. "Engaging Rose-Hulman students directly with CHV Capital and the leadership at MindFrame provided great educational and professional development opportunities, and it is now very gratifying to know that the student’s efforts have been impactful for the company’s commercial and clinical success,” said Mitch Landess, manager of client programs at Rose-Hulman Ventures.

Also, leaders from the Indiana Clinical and Translational Sciences Institute (Indiana CTSI), based in Indianapolis, consulted with MindFrame on its clinical and regulatory strategy.

"MindFrame's technology provides material enhancements within a class of mechanical embolectomy solutions that allow for greater neurovascular access, an expanded treatment window and the prospect to significantly improve neurological outcomes for patients who suffer strokes," said Anantha Shekhar, MD, PhD, director of the Indiana CTSI and associate dean for translational research at Indiana University. "Upon U.S. approval we look forward to IU Health's nationally ranked neuroscience program being an early adopter of this therapy and growing future research partnerships with market leading companies like Covidien."

MindFrame's focus has always been to commercialize the best therapy for patients, according to its CEO, Ken Charhut. “Our Indiana relationships with CHV Capital, IU Health, Indiana CTSI and Rose Hulman Ventures only further enhanced our focus as a patient-centered company and helped shape our thinking about the intricacies of the continuum of care needed to serve these patients,” said Charhut.

Covidien is a medical equipment and supply company, incorporated in Dublin, Ireland, with corporate offices located in Mansfield, Massachusetts.

About CHV Capital

A return-driven venture capital fund, CHV Capital, Inc. (CHV) is guided by the strategic objectives and mission of Indiana University Health, Indiana's largest health care system. These objectives include fostering economic development and the life sciences in Indiana. CHV Capital actively seeks syndication investment opportunities, particularly with Midwest institutional investors. CHV Capital engages only in investment opportunities where CHV management, boards and partners are uniquely positioned to add value.

About Indiana University Health

Named among the "Best Hospitals in America" by U.S.News & World Report for 15 consecutive years, Indiana University Health is dedicated to providing a unified standard of preeminent, patient-centered care. A unique partnership with Indiana University School of Medicine - one of the nation's leading medical schools - gives our highly skilled physicians access to innovative treatments using the latest research and technology. Discover the strength at iuhealth.org.

Source: Indiana University Health

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