Quantum Surgical Acquires NeuWave Medical from J&J: Precision IO Group and the Future of Robotic Tumor Ablation

Deal at a Glance

On February 24, 2026, Quantum Surgical, a French medical robotics company specializing in minimally invasive robotic-assisted cancer treatment, announced the acquisition of NeuWave Medical, Inc. from Johnson & Johnson (NYSE: JNJ). The transaction brings together two highly complementary interventional oncology platforms under a newly created parent entity, Precision IO Group Inc., with ambitions to become a leader in the rapidly growing field of image-guided tumor ablation.

The deal is notable for its strategic symmetry: Quantum Surgical contributes next-generation AI-powered robotic navigation for percutaneous tumor ablation, while NeuWave contributes the installed base, market share, and clinical track record of the dominant microwave ablation platform in US cancer centers. Together, they aim to accelerate the shift of energy-based tumor ablation from a last-resort therapy to a first-line treatment option for eligible cancer patients.

Quantum Surgical and the Epione Robotic Platform

Company Background

Quantum Surgical was founded in 2017 in Montpellier, France, by Bertin Nahum and a team of medical robotics pioneers who previously built and sold Medtech S.A. (now Zimmer Biomet's ROSA robotic platform). The company specializes in robotic-assisted systems for interventional oncology, with offices in Montpellier and Miami, Florida.

Bertin Nahum is a serial entrepreneur in surgical robotics. Before Quantum Surgical, he founded Medtech S.A. in 2002, took it public on Euronext in 2013, and sold it to Zimmer Biomet in 2016. He holds a Master of Science in Robotics from the National Institute of Applied Sciences (INSA) in France and a Doctorate of Technology Honoris Causa from Coventry University in the UK. He was awarded the French Legion of Honor (Chevalier) in 2013. Under his leadership, Quantum Surgical received the Prix Galien in 2022, one of the most prestigious awards in biopharmaceutical and medical device research.

Epione Platform: How It Works

The Epione robotic platform is Quantum Surgical's flagship product, designed to plan, target, deliver, and confirm percutaneous tumor ablation procedures. Percutaneous tumor ablation involves inserting one or more needles or probes through the skin to reach and destroy a tumor using thermal energy, without the need for open surgery.

Epione addresses the core clinical challenge in percutaneous ablation: precise needle placement. In conventional freehand procedures, the physician must manually align the needle trajectory with the tumor target while accounting for patient breathing, organ motion, and complex anatomy. Epione uses a robotic arm, a navigation system, and a camera to assist the physician through three phases:

1. Planning Phase: The system defines the desired instrument placement relative to the target anatomy using 2D and 3D CT imaging. The physician identifies the tumor margins and plans needle trajectories.

2. Guidance Phase: The robotic arm aligns to the planned trajectory. The system synchronizes with the patient's breathing cycle and monitors respiratory levels, verifying patient position before instrument advancement. The physician maintains full control throughout and manually advances the needle.

3. Assessment Phase: After ablation, the system overlays pre- and post-treatment image data to confirm that the ablation zone adequately covers the tumor margins, providing immediate verification of treatment success.

Epione is designed as an open-architecture platform compatible with common CT imaging systems and multiple ablation modalities, including microwave ablation (MWA), radiofrequency ablation (RFA), cryoablation, irreversible electroporation (IRE), and electrochemotherapy (ECT). This modularity allows physicians to select the energy source best suited to each tumor's characteristics.

Clinical Milestones and Regulatory Status

The FDA 510(k) clearance (K211645) classifies Epione as a stereotactic accessory under product code JAK (Computed Tomography X-ray System, 21 CFR 892.1750), with the MAXIO system as a predicate device. The clearance was supported by clinical data from Professor Thierry de Baere at Gustave Roussy Cancer Center and Professor Boris Guiu at Montpellier University Hospital, where 24 liver lesions were successfully treated in 21 patients with no reported complications.

To date, more than 1,500 patients have been treated with Epione in Europe and the United States across abdominal, lung, and musculoskeletal indications, with over 20 cancer center installations worldwide.

NeuWave Medical: Technology and Market Position

Origins and Technology

NeuWave Medical was founded in 2004 in Madison, Wisconsin, by University of Wisconsin-Madison radiologist and biomedical engineer Fred Lee. The company developed its microwave ablation technology through collaboration between physicians and microwave scientists, with the goal of maximizing energy delivery to tissue while minimizing invasiveness.

NeuWave's Certus 140 Ablation System operates at 2.45 GHz within the radiofrequency spectrum, delivering microwave energy through probes directly into tumor tissue. The electromagnetic waves heat and destroy tumor cells by achieving intratumoral temperatures above 100 degrees Celsius, creating large, predictable ablation zones. Key technical features include:

• High-powered computer and touchscreen interface: Enables activation of single or simultaneous multiple probe procedures for lesions of varying shapes and sizes
• Precision PR probe: Designed to limit ablation length for precise and controlled ablations near critical structures
• Active CO2 cooling: Cools the probe shaft during energy delivery, protecting adjacent tissue
• Multi-probe synchrony: Allows multiple probes to operate simultaneously for treating larger tumors
• Tissue-Loc technology: Prevents probe migration as the patient moves or breathes
• ABLATE-IQ software: Supports pre-operative planning, perioperative temperature monitoring, and post-ablation confirmation of treatment margins

Microwave ablation offers several advantages over radiofrequency ablation (RFA), the older and more widely established thermal ablation technology. MWA achieves higher intratumoral temperatures more quickly, creates larger and more predictable ablation zones, is less affected by the "heat sink" effect near blood vessels, and can treat larger tumors in a single session.

Installed Base and Market Dominance

NeuWave's market position is formidable. Since 2011, NeuWave systems have been used to treat more than 100,000 patients worldwide with challenging lung, kidney, and liver solid tumors. The company's technology is used in over 70% of top US cancer centers, and NeuWave is estimated to account for roughly 60% to 70% of the US microwave ablation market. This installed base is widely considered the most strategically valuable asset in the acquisition, providing Precision IO Group with immediate access to leading hospital accounts and established relationships with interventional radiologists.

J&J's Ethicon division acquired NeuWave Medical in 2016 for an undisclosed amount (NeuWave had raised approximately $55 million in equity financing, with a $25 million Series C led by Versant Ventures). Under J&J ownership, the NeuWave platform continued to expand its clinical reach and market penetration, though it remained a relatively small part of J&J's broader surgical technologies portfolio.

Why J&J Sold NeuWave: Portfolio Optimization

The Decision to Exit

In April 2025, Johnson & Johnson's MedTech surgery business sent a letter to customers announcing the discontinuation of the NeuWave business. The letter, part of a broader portfolio simplification initiative, outlined a phased wind-down:

• Manufacturing and selling of NeuWave Capital Systems: April 1, 2025
• Manufacturing and selling of NeuWave probe portfolio: March 31, 2026
• Service and repair of existing NeuWave Capital System fleet: September 30, 2026

The decision was part of a wider restructuring of J&J MedTech's Surgery franchise. In fiscal year 2025, the company initiated a restructuring program to "simplify and focus operations by exiting certain non-strategic product lines and optimize select sites" across the network. The restructuring, which incurred $205 million in expenses through Q4 2025, also affected select endomechanical offerings (older generation staplers, trocars, and ligation products) and women's health and hernia mesh products.

The Pivot to a Sale

The clinical community responded to the discontinuation notice with concern. The Society of Interventional Radiology (SIR) reported that J&J received significant customer feedback requesting continued access to the NeuWave technology. In a subsequent letter, J&J indicated it was "exploring potential strategic alternatives to discontinuing the business."

By September 2025, J&J announced it had received a binding offer from Quantum Surgical to acquire the NeuWave business. The deal closed on February 24, 2026.

J&J's Strategic Rationale

For J&J, the transaction reflects a deliberate portfolio optimization strategy under MedTech Executive Vice President Tim Schmid. The company is "leaning in" to higher-growth areas, particularly cardiovascular technologies (following the $13.1 billion Shockwave acquisition in 2024 and the $16.6 billion Abiomed acquisition in 2022), surgical robotics (the Ottava platform and Monarch bronchoscopy system), and digital surgery solutions.

J&J's MedTech business delivered nearly $34 billion in revenue in 2025, with cardiovascular sales rising 15.8% to $8.9 billion. The company is also planning to separate its Orthopaedics franchise into a standalone business. Within this strategic context, a standalone microwave ablation product line — while clinically important — no longer fit J&J's focus on larger, platform-scale opportunities.

A J&J spokesperson characterized the sale as reflecting "a continued focus on evaluating the surgical technologies portfolio to best support patients and customers, accelerate business growth, and optimize manufacturing operations," adding that "as part of Quantum Surgical, NeuWave will be well positioned to continue delivering innovative products, solutions, and support to its customers."

Precision IO Group: Formation and Strategy

Leadership

Precision IO Group Inc. is headquartered in Miami, Florida, and is led by Kurt Azarbarzin as CEO. Azarbarzin is a medtech industry veteran with 40 years of experience in minimally invasive surgery. His career spans multiple leadership roles:

Azarbarzin has led the development of over 90 new products representing more than $910 million in annual sales. His experience spans surgical robotics (Verb Surgical, where he led the J&J/Verily joint venture of 550+ employees), access systems (SurgiQuest's AirSeal became the standard of care for advanced laparoscopic and robotic surgery), and endoluminal robotics (EndoQuest). This background positions him to lead the integration of two distinct but complementary technology platforms.

The Precision IO Group leadership team also includes:

• Bertin Nahum -- President of Quantum Surgical and R&D Head of Precision IO Group
• Leah Kissling -- President of NeuWave and Commercial Head of Precision IO Group
• Ramnik Khangura -- Chief Operating Officer, Precision IO Group
• Zach Stassen -- Chief Financial Officer, Precision IO Group

Operating Model

In a customer letter dated February 24, 2026, Azarbarzin outlined the immediate operating philosophy: both Quantum Surgical and NeuWave Medical will continue to operate independently to ensure a smooth and uninterrupted customer experience.

• Epione remains an open-architecture platform compatible with common CT imaging and tumor ablation modalities, providing physicians with the flexibility to treat distinct tumor morphologies
• NeuWave's microwave ablation platform continues to be available independently or combined with other therapies

However, the companies are developing cross-platform capabilities. Precision IO Group is investing in remote interventions, leveraging world-renowned experts for remote trajectory planning and post-treatment assessment using Epione tools. The combined R&D teams — spanning AI, robotics, hardware and software, and navigation — are expected to accelerate innovation across the portfolio in the short, medium, and long term.

As Azarbarzin stated: "Drawing on my 40 years of experience in minimally invasive surgery, I am convinced that AI, robotics, and enabling remote interventions are game-changers for cancer care and interventional radiology."

Investment Backing

The acquisition and combined growth are fueled by investment from Ally Bridge Group, identified as the largest investor in Precision IO Group. Ally Bridge Group is a global healthcare investment firm founded in 2013 by Frank Yu, with offices in New York and Hong Kong. The firm has led or co-led over $6 billion in healthcare transactions and focuses on high-impact life science innovation across private and public markets. In connection with the transaction, Stifel acted as exclusive financial advisor to Quantum Surgical, and McDermott Will & Emery LLP served as legal advisor.

Precision IO Group now has a combined team of more than 250 employees worldwide.

Competitive Landscape in Interventional Oncology

The Tumor Ablation Market

The interventional oncology and tumor ablation market is moderately concentrated, with leading multinational players controlling significant share through diversified portfolios. The global interventional oncology market was valued at approximately $2.9 billion in 2025 and is projected to reach $6.7 billion by 2035, growing at a CAGR of approximately 8.6%. The oncology ablation subsegment specifically is estimated at $1.45 billion in 2025, expanding to $1.64 billion in 2026 with a CAGR of 12.5%.

Key Competitors

Medtronic's Emprint HP platform is the primary competitor to NeuWave in the microwave ablation segment. Medtronic also holds a co-marketing agreement with HistoSonics for histotripsy, a non-thermal mechanical ablation approach that represents an emerging alternative to thermal modalities.

Emerging Non-Thermal Competitors Attract Major Investment

The competitive landscape in interventional oncology is rapidly intensifying, with non-thermal ablation technologies attracting significant investor capital:

HistoSonics -- The Edison histotripsy system uses focused ultrasound to mechanically destroy liver tumors without needles, incisions, or radiation. In August 2025, HistoSonics was acquired by a consortium of investors led by K5 Global and Bezos Expeditions, with participation from Wellington Management, at a valuation of approximately $2.25 billion. The company had previously raised over $300 million in venture funding from investors including Johnson & Johnson (through JJDC), Varian, and Alpha Wave. With over 100 systems sold, HistoSonics is expanding into kidney, pancreas, and prostate indications. The $2.25 billion valuation represents one of the largest deals in the interventional oncology space and signals strong institutional conviction in non-thermal ablation technologies.

Galvanize Therapeutics -- This commercial-stage company is pioneering pulsed electric field (PEF) therapy for solid tumors and chronic lung disease. In September 2025, Galvanize raised an oversubscribed $100 million Series C financing led by Sofinnova Partners, with participation from Norwest Venture Partners, Ally Bridge Group, Perceptive Xontogeny Venture Fund, Janus Henderson Investors, and existing investors including Fidelity, T. Rowe Price, and Intuitive Surgical. Concurrent with the financing, Doug Godshall -- former CEO of Shockwave Medical (acquired by J&J for $13.1 billion) and HeartWare International (acquired by Medtronic for $1 billion) -- was appointed Chairman and CEO. The company's Aliya PEF platform uses non-thermal, short-duration, highly focused electrical pulses to destabilize cancer cells, and its INUMI Flex endoscopic needle ablation system received FDA clearance in 2025 for treating lesions such as lung nodules.

These developments underscore a broader industry trend: interventional oncology is attracting both corporate and financial investment at scale, with non-thermal modalities (histotripsy, PEF) emerging as potential challengers to the thermal ablation technologies that NeuWave and Medtronic offer.

Where Precision IO Group Fits

Precision IO Group's combined offering is differentiated by the integration of robotic navigation (Epione) with market-leading microwave ablation technology (NeuWave). No other competitor currently offers a unified platform that combines AI-assisted robotic needle guidance with a dominant ablation energy system. This positions Precision IO Group to capture value at multiple points in the interventional oncology workflow: planning, navigation, ablation delivery, and post-treatment confirmation.

The company's focus on remote interventions — enabling expert physicians to remotely plan needle trajectories for less experienced operators — could further differentiate the platform by democratizing access to specialized procedural expertise.

Market Opportunity and Growth Drivers

Interventional Oncology as the Fourth Pillar

Interventional oncology is increasingly recognized as the fourth pillar of cancer treatment, alongside surgery, medical oncology (chemotherapy and targeted therapies), and radiation oncology. Energy-based tumor ablation, once considered a last-resort option for patients who were not surgical candidates, is transitioning toward first-line treatment for appropriately selected patients.

Several factors are driving this shift:

1. Expanding clinical evidence: Growing body of literature demonstrating efficacy and safety of percutaneous ablation for liver, lung, kidney, and bone tumors, including clinical guidelines from organizations like the Barcelona Clinic Liver Group and the National Comprehensive Cancer Network (NCCN)

2. Minimally invasive advantage: Percutaneous ablation can be performed as an outpatient procedure, with shorter recovery times, reduced pain, lower complication rates, and lower costs compared to open surgery

3. Technological advancement: Improvements in imaging guidance, ablation energy delivery, and robotic assistance are enabling treatment of tumors in challenging locations and expanding the pool of patients who can benefit

4. Rising cancer incidence: Global cancer burden continues to grow, creating demand for effective and less invasive treatment options

5. Reimbursement evolution: Established CPT codes and improving payer coverage for ablation procedures are reducing barriers to adoption

Key Market Data

Microwave ablation is the fastest-growing segment within the interventional oncology ablation market, driven by its advantages over radiofrequency ablation for larger tumors and tumors near blood vessels. The microwave ablation devices market alone is projected to grow from approximately $506 million in 2025 to $1.47 billion by 2034, at a CAGR of 12.5%.

Regulatory Status of the Combined Platform

Current Approvals

Regulatory Considerations for Integration

Both products will continue to operate independently in the near term, maintaining their existing regulatory clearances. The open-architecture design of Epione means it is already compatible with NeuWave's microwave ablation probes as one of several supported energy modalities, requiring no new regulatory filings for physicians to use them together.

Future regulatory milestones will likely include:

• FDA expansion of Epione indications beyond abdominal ablation to include chest and musculoskeletal indications (already CE Marked in the EU)
• Potential development of integrated hardware/software solutions that leverage both platforms, which would require additional regulatory submissions
• Continued geographic expansion, building on the recent Taiwan authorization

Implications for the Medtech M&A Landscape

The Portfolio Optimization Trend

The Quantum Surgical-NeuWave transaction illustrates a broader trend in medtech M&A: large diversified companies divesting non-core assets to focus resources on their highest-growth segments, while smaller, focused companies acquire those assets to build comprehensive platforms.

For J&J, the NeuWave divestiture follows a pattern of strategic portfolio management that includes:

• The planned separation of its Orthopaedics franchise into a standalone company
• The $13.1 billion Shockwave Medical acquisition (2024) to build cardiovascular leadership
• The $16.6 billion Abiomed acquisition (2022) for interventional cardiology
• Continued investment in the Ottava surgical robotics platform and Monarch bronchoscopy system
• A restructuring program for its Surgery franchise involving exit of non-strategic product lines ($205 million in restructuring charges through 2025)

For Quantum Surgical, the acquisition represents a scale-up strategy common among innovative medtech companies: developing a breakthrough technology platform and then acquiring an established commercial franchise to accelerate market access.

What This Deal Signals

Several signals emerge from this transaction for the broader medtech M&A landscape:

1. Interventional oncology is attracting significant investment: The formation of a dedicated interventional oncology platform company, led by an experienced CEO with backing from a major healthcare investor (Frazier Healthcare Partners, where Azarbarzin was a Partner), signals institutional conviction in this market.

2. Installed base has strategic value: NeuWave's presence in 70% of top US cancer centers was a primary strategic asset. In medtech M&A, commercial infrastructure and customer relationships often command premium valuations relative to revenue.

3. AI and robotics are reshaping interventional procedures: The combination of AI-powered robotic navigation with established ablation technology reflects the broader trend of bringing robotics and digital capabilities to image-guided procedures. This mirrors similar dynamics in surgical robotics (intuitive, J&J Ottava), bronchoscopy (J&J Monarch), and endovascular intervention.

4. Divestiture-to-acquisition pathways create value: J&J's initial plan to simply discontinue NeuWave would have destroyed significant clinical and commercial value. The pivot to a sale, driven by customer feedback, preserved continuity for patients and physicians while creating a strategic asset for Quantum Surgical.

Post-Acquisition Developments

Since the February 2026 close, Precision IO Group has moved quickly to advance its clinical and commercial agenda:

EPIOS US Clinical Study for Bone Tumors (April 2026)

Precision IO Group launched the EPIOS study, a multi-center US clinical trial evaluating the safety and performance of the Epione robotic platform for treating bone tumors and metastases. The first patient was successfully treated on April 28, 2026, at a leading cancer center in Miami, Florida. The study is designed to support FDA expansion of Epione's indications beyond abdominal ablation, building on the CE Mark for bone indications that was obtained in September 2025. This is significant because approximately one-third of cancer patients suffer from bone metastasis, and roughly 280,000 patients in the US alone have secondary bone metastases requiring pain palliation.

King's College Hospital: First UK Adoption (June 2025)

In June 2025, King's College Hospital NHS Foundation Trust in London became the first center in the United Kingdom to install the Epione robotic platform for treating cancer tumors in the abdomen and the lungs. The center became the fastest-growing Epione site globally, treating more than 25 patients in less than 10 weeks, demonstrating rapid clinical adoption.

PreciseOnco European Research Consortium (February 2026)

Quantum Surgical is a key industry partner in the PreciseOnco consortium, a public-private partnership coordinated by Philips and co-funded by the European Union's Innovative Health Initiative (IHI). The consortium was awarded EUR 14.9 million in public funding (complemented by EUR 9 million in in-kind contributions) for a five-year program integrating spectral CT imaging, robotic guidance, and AI into minimally invasive cancer treatment. Other industry partners include Philips and IGEA, with clinical sites at University Hospital Cologne, University Medical Center Utrecht, Leiden University Medical Center, Hopitaux Universitaires Henri-Mondor (Paris), and Hospices Civils de Lyon. The program includes five multicenter clinical studies -- VISTA, SPOT ON, HORA EST HCC 2, SPECTRA-L, and LASER -- designed to validate the technologies across tumor types and workflows.

Key Takeaways

Looking Ahead

The formation of Precision IO Group represents a bet that the future of interventional oncology lies at the intersection of AI, robotics, and energy-based tumor destruction. If successful, the combined platform could accelerate the adoption of percutaneous tumor ablation as a standard first-line treatment, expand access through remote expert planning, and establish a new benchmark for precision in image-guided cancer therapy.

The near-term milestones to watch include:

• Results from the EPIOS US clinical study for bone tumors (first patient treated April 2026), supporting FDA expansion of Epione indications
• FDA submission for expanded Epione indications (chest) in the United States
• Commercial integration of the two sales organizations and customer relationships
• Development and clinical validation of remote intervention capabilities
• Findings from the five PreciseOnco EU clinical studies integrating spectral imaging with robotic guidance
• Additional geographic market entries beyond the current US, European, Taiwan, and UK footprints
• Potential further acquisitions by Precision IO Group to expand its interventional oncology platform

For the interventional oncology community, the deal brings continuity for NeuWave customers who faced product discontinuation, and for the broader medtech industry, it offers a case study in how portfolio optimization at a large company can create strategic opportunities for focused, innovative acquirers.

Sources: Quantum Surgical press releases (February 24, 2026; February 3, 2026; March 26, 2026); Precision IO Group / BusinessWire press releases (April 29, 2026); Fierce Biotech; MedTech Dive; MassDevice; Endovascular Today; AuntMinnie; Life Science Market Research; Society of Interventional Radiology; J&J customer communications; Precedence Research market data; Mordor Intelligence tumor ablation market reports; HistoSonics press releases (August 2025); Galvanize Therapeutics press releases (September 2025); PreciseOnco consortium / Philips press release (February 2026); Ally Bridge Group; NeuWave Medical website; Quantum Surgical and Precision IO Group websites.