Channel Medsystems

The Californian company Channel Medsystems is founded in 2013. The main development of a startup is the device of cryoablation of endometrium for treatment of heavy menstrual bleedings.

History

2019: The court ordered to Boston Scientific to purchase the company

In the middle of December, 2019 Boston Scientific which signed the purchase agreement of a startup in 2017 tried to withdraw the transaction, but was forced to recede. The court of the State of Delaware decided that Boston Scientific is obliged to satisfy conditions of earlier signed agreement and to purchase Channel Medsystems for $275 million.

During the period from 2013 to 2015 Boston Scientific invested in development of a startup about $8 million in exchange for a 15% share in Channel. In November, 2017 Boston Scientific agreed to purchase Channel Medsystems provided that regulatory bodies will permit to put by September 30, 2019 on the market the main development of a startup — the device for cryoablation of endometrium under the name Cerene.

Boston Scientific which signed the purchase agreement of a startup in 2017 tried to withdraw the transaction, but was forced to recede

However in December, 2017 it was found out that the vice president of Channel Medsystems Dinesh Shankar forged several documents illegally to appropriate $2.6 million. A number of fraudulent documents got to the Food and Drug Administration (FDA) within the request for registration of the Cerene device. As a result of Boston Scientific decided to withdraw the transaction about a company merger in May, 2018.

However in FDA decided that forgery documents will not influence the solution of experts, and on March 28, 2019 approved release of the Cerene device for treatment of heavy menstrual bleedings at women in a premenopauza. It caused new judicial proceedings — this time about resuming of the old transaction about purchase of the company which Boston Scientific lost. The company should provide in court documents on resuming of the transaction within five working days.^[1]

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