HistoSonics Explores Potential Sale Amid Promising Clinical Results for Cancer-Destroying Sound Beam Technology

HistoSonics, a medical technology company pioneering non-invasive tumor destruction using focused sound waves, is reportedly exploring a potential sale to major medtech players. This development comes on the heels of encouraging clinical trial results for its innovative Edison platform, which has shown promise in treating liver cancer.

Potential Acquisition Talks and Valuation

According to a recent report by the Financial Times, HistoSonics is in early discussions with several industry giants, including Medtronic, GE HealthCare, and Johnson & Johnson. The potential deal could value the company at over $2.5 billion, reflecting the high interest in its groundbreaking technology.

Johnson & Johnson has been a long-standing supporter of HistoSonics, participating in multiple funding rounds through its Johnson & Johnson Innovation venture arm. The healthcare conglomerate led an $85 million financing round in December 2022 and joined a subsequent $102 million Series D round in August 2024.

GE HealthCare has also shown significant interest in HistoSonics' technology, having signed a distribution agreement in May 2022 to pair the company's hardware with GE's ultrasound imaging systems.

Promising Clinical Results for Liver Cancer Treatment

HistoSonics recently announced encouraging 12-month data from a clinical trial of its Edison platform, which uses targeted ultrasound to mechanically liquify cancer tissue within the liver without breaking the skin or generating heat.

The study, involving 47 participants with primary hepatocellular carcinoma or metastatic liver cancer, demonstrated impressive results:

• 90% of patients showed local tumor control after one year
• All participants had either previously tried or were ineligible for standard treatments like surgery, radiation, or ablation
• Follow-up imaging revealed preservation of healthy internal structures, including blood vessels and bile ducts

These results played a crucial role in securing FDA de novo clearance for the Edison histotripsy system in October 2023. The platform is currently being evaluated for potential applications in kidney and pancreatic cancer as well.

Market Potential and Future Outlook

HistoSonics' innovative approach to cancer treatment has garnered significant attention from both investors and potential acquirers. The company's revenue projections are reportedly set at $100 million for the current year, with expectations to double to $200 million by 2026.

While HistoSonics had initially considered going public, the current market uncertainty has led the company to explore a potential sale as a more attractive option. As discussions with major medtech firms progress, the outcome could significantly impact the landscape of non-invasive cancer treatments and potentially reshape the competitive dynamics in the medical technology sector.