May 17, 2018
New USD 30 million venture capital fund to spur innovation in heart disease and stroke care
American Heart Association and co-investors Philips and UPMC to fund pioneering healthcare products and solutions for patients, scientists and providers through Cardeation Capital venture capital fund
Dallas, U.S. – With cardiovascular disease on the rise and costs heading to USD 1 trillion in the U.S. [1], ground-breaking developments in diagnostics, treatments and care are urgently needed. To assure that innovations are introduced into the healthcare system to benefit patients as quickly as possible and with evidence to demonstrate their impact, the American Heart Association, together with Royal Philips (NYSE: PHG, AEX: PHIA) and UPMC today announced the launch of Cardeation Capital, a USD 30 million collaborative venture capital fund designed to spur healthcare innovation in heart disease and stroke care. Managed by Aphelion Capital, each of the three organizations has committed USD 10 million to the fund to rapidly bring products and solutions to market that address critical areas of healthcare delivery and health management. Cardeation Capital will invest in emerging healthcare companies that can measurably impact the prevention and treatment of cardiovascular diseases and stroke and their risk factors, including diabetes. Aphelion Capital, a leading healthcare and medical technology venture capital firm, brings substantial medical and health system knowledge and extensive networks to enhance returns for the fund and the entrepreneurs in whom the fund invests over the long term. The American Heart Association – the world’s leading voluntary health organization devoted to fighting cardiovascular disease – is committed to forming strategic partnerships and values the power of collaboration to advance its mission. By combining emerging technologies with ground-breaking science, Cardeation Capital is just one example of how the Association is accelerating innovation in healthcare. Through this novel venture fund, the American Heart Association and its co-investors will work closely together to identify and fund best-in-class healthcare technology companies with scalable products and services. Entrepreneurs and emerging companies who are interested in submitting their innovative products and solutions to improve the quality of healthcare delivery can submit directly to Aphelion Capital. “Cardiovascular disease costs are projected to exceed USD 1 trillion by 2035,” said Nancy Brown, CEO of the American Heart Association. “New approaches are urgently needed to increase prevention and treatment strategies to reverse the trend for those already suffering from heart diseases, as well as prevent populations from ever getting heart disease. Through Cardeation Capital, we expect to deliver better outcomes and improve the quality of healthcare delivery for the people who are counting on us the most.” “At Philips our goal is to improve the lives of 3 billion people a year by 2025. To achieve this ambition, we co-create solutions with healthcare providers, invest in start-ups, and partner with other industry players,” said Rich Wilmot, head of Health Technology Ventures, Philips. “Together with the American Heart Association and UPMC, through the Cardeation Capital venture capital fund we will invest in innovative healthcare products, services and solutions that have the potential to improve the lives of cardiovascular disease and stroke patients.” “As one of the largest integrated health systems in the United States, UPMC is making significant investments in the disruptive technologies needed to dramatically improve the quality and effectiveness of healthcare,” said Tal Heppenstall, president of UPMC Enterprises, the commercialization arm of UPMC. “We expect that Cardeation Capital, working closely with our world-renowned clinicians at UPMC Heart and Vascular Institute, will play a critical role in this strategy for the benefit of our patients.” “Our organization is committed to investing in low capital-intensive entrepreneurial opportunities that will improve healthcare quality while reducing costs in our healthcare system,” said Ned Scheetz, founder and managing partner of Aphelion Capital. “Through Cardeation Capital, we aim to strategically invest in a collaborative manner that will leverage the collective knowledge and experience of these top in field global organizations. We look forward to working closely with our partners to address today’s real-world issues associated with healthcare delivery.” Visit www.aphelioncapital.net for more information.
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips' health technology portfolio generated 2017 sales of EUR 17.8 billion and employs approximately 74,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.
About the American Heart Association
The American Heart Association is devoted to saving people from heart disease and stroke – the two leading causes of death in the world. We team with millions of volunteers to fund innovative research, fight for stronger public health policies, and provide lifesaving tools and information to prevent and treat these diseases. The Dallas-based association is the nation’s oldest and largest voluntary organization dedicated to fighting heart disease and stroke. To learn more, or to get involved, call 1-800-AHA-USA1, visit heart.org, or call any of our offices around the country. Follow us on Facebook and Twitter.
About UPMC
A $16 billion world-renowned health care provider and insurer, Pittsburgh-based UPMC is inventing new models of patient-centered, cost-effective, accountable care. UPMC provides more than $900 million a year in benefits to its communities, including more care to the region’s most vulnerable citizens than any other health care institution. The largest nongovernmental employer in Pennsylvania, UPMC integrates 80,000 employees, more than 30 hospitals, 600 doctors’ offices and outpatient sites, and a 3.4 million-member Insurance Services Division, the largest medical insurer in western Pennsylvania. As UPMC works in close collaboration with the University of Pittsburgh Schools of the Health Sciences, U.S. News & World Report consistently ranks UPMC Presbyterian Shadyside on its annual Honor Roll of America’s Best Hospitals. UPMC Enterprises functions as the innovation and commercialization arm of UPMC, and UPMC International provides hands-on health care and management services with partners around the world. For more information, go to UPMC.com.
About Aphelion Capital
Aphelion Capital invests in low capital-intensive healthcare companies and medical technology. The firm strongly prefers investments in companies that improve quality while reducing costs in our healthcare system. The fund is generally a long-term investor in companies that have superior products and strong management teams. They prefer private investments where they can partner with the company to enhance success and value appreciation. Aphelion leverages its substantial medical and health system knowledge and deep networks to enhance returns for both the fund and the entrepreneurs in whom the fund invests. Aphelion's managers have extensive experience investing in technology companies across both the public and private equity markets.
