Medtech Financings, February 2015

Fundings for medical technologies in February 2015 stand at $227 million, led by the $38.3 million funding of K2M Group, followed by the $36 million funding of HeartFlow.

Below are the top fundings for the month thus far:

Company, funding Product/technology
K2M Group has raised $38.3 million in a round of funding according to press reports Minimally invasive spine surgery technologies
HeartFlow has raised $36 million in a round of funding according to press reports Non-invasive diagnosis of coronary artery disease
Invuity, Inc., has raised $20 million in a round of funding according to press reports Technologies to improve access and visualization in minimally invasive surgeries

For the complete list of medtech fundings in February 2015, see link.

For a historical list of the individual fundings in medtech, by month, since 2009, see link.

Wound Closure Technologies Fragmented, But Growing through 2018

Wounds have been closed and secured through the use of sutures and bandages since ancient times, using equipment ranging from threads made of a variety of organic materials, to tight wrappings. In the modern medical age, suture materials have evolved through a succession of stages from non-resorbable, to resorbable, to stapling devices. Surgeons still primarily use sutures for wound closure and securement—sutures are cheap, familiar and work most of the time. However, it is important to discuss this class of products and their relationship with adjunctive measures, and with newer products under development.

There are six major device markets in the field of wound closure:

  • Sutures and Staples
  • Vascular Closure Devices
  • Surgical Sealants and Glues
  • Surgical Hemostats
  • Cyanoacrylate Glues for External Closure
  • External Closure Tapes and Strips

The markets for some segments in wound closure, especially sutures and staples, surgical tape, hemostats, and sealants and glues, are highly fragmented. There are literally hundreds of companies with products that fall into the wound closure arena. Barriers to entry are low for some segments, such as medical tapes, sutures and staples, and high for others, such as fibrin and others. In addition, many companies purchase from the original equipment manufacturers (OEM), and rebrand the products to sell under their own name. While this may obscure who the market leaders are, there no little doubt, however, that the overall market leader for the products in wound closure is Johnson & Johnson (JNJ), which markets devices that fall under six of the seven product categories. JNJ is followed by Covidien and B. Braun/Aesculap, which together make up the three largest players in this space.

Global Market Shares in Wound Closure 2014

Screen Shot 2015-02-23 at 4.02.15 PM

Source: MedMarket Diligence, LLC; Report #S192.

Growth in this market is still driven by new technologies with potential to not only penetrate well-established wound closure technologies but also gain procedure volume in novel applications. Below is illustrated the relative compound annual growth rates in sales of each of the major types of wound closure technologies.

Sales Growth in Wound Closure Types, 2014-2018

Screen Shot 2015-02-23 at 4.08.14 PM

Source: MedMarket Diligence, LLC; Report #S192.

Technologies at Medtech Startups, December/January

Below is a list of the medical technologies under development at startups identified in December 2014 and January 2015 and included in the Medtech Startups Database:

  • Device to enable office-based placement of tympanostomy tubes.
  • Surgical wound closure device technology
  • Pelvic neuromodulation for urinary incontinence, fecal incontinence, chronic pelvic pain, others.
  • Device designed to treat blood plasma to improve its ability to remove lipids from atherosclerotic plaque.
  • Regenerative medicine
  • Patient-specific surgical instruments for treatment of joint injuries.
  • Surgical sensors/probes, including gamma probe for use during radiosurgically-guided procedures.
  • Biodegradable medical implants.
  • Novel device to monitor inflammation of the gastrointestinal tract.
  • Surgical instrumentation including surgical perforation guide.
  • Technology for improved treatment of atrial fibrillation.

For a historical listing of technologies identified at startups, see link.

Surgical Sealants and Glues Sales Growth

Aside from demonstrating clinical utility in wound sealing and closure on their own, sealants and glues are emerging as important adjunctive tools for sealing staple and suture lines, and some of these products also are being employed as general hemostatic agents to control bleeding in the surgical field. Manufacturers have also developed surgical sealants and glues that are designed for specific procedures – particularly those in which staples and sutures are difficult to employ or where additional reinforcement of the internal suture/staple line provides an important safety advantage.

Sales of surgical sealants and glues have become as common in some surgical procedures as sutures and staples in well developed markets (U.S., Europe and Japan), but their use continues to expand in both stand alone and adjunctive use with other wound closure. Emerging markets, especially in Asia will drive nearly double these growth rates. All told, the global surgical sealants and glues market will eclipse $2 billion by 2018 on compound annual growth of 9.4%.

Screen Shot 2015-01-27 at 2.45.11 PMSource: MedMarket Diligence, LLC; Report #S192.

 

Medtech fundings for January 2015

Fundings for medical technologies in January 2015 stand at $361 million, led by the $78.3 million IPO by Entellus Medical, followed by the $49.76 million funding of Humacyte, and the $31.65 million funding of CardioFocus.

Below are the top fundings for the month thus far:

Company, funding Product/technology
Entellus Medical, Inc., has raised $78.3 million in an initial public offering according to press reports Minimally invasive devices for the treatment of chronic and recurring sinusitis
Humacyte, Inc., has raised $49.76 million of a planned $73.76 million round of funding according to a regulatory filing Vascular grafts and other tissue-engineered grafts based on acellular extracellular matrices
CardioFocus, Inc., has raised $31.65 million of a planned $33.2 million round of funding according to a regulatory filing Endoscopic ablation for the treatment of atrial fibrillation
Transcend Medical, Inc., has raised $29.27 million in a round of funding according to a regulatory filing Devices for the treatment of glaucoma
EarlySense Ltd has rasied $20 million in funding from Samsung Electronics according to press reports Non-contact vital signs monitoring
Vascular Dynamics, Inc., has raised $16.85 million in a Series B round of funding according to the company Minimally invasive treatment of refractive or resistant hypertension

For the complete list of medtech fundings in January 2015, see link.

For a historical list of the individual fundings in medtech, by month, since 2009, see link.

Surgical Sealants and Glues in the Balance of Wound Closure

Sealants and glues are emerging as important adjunctive tools for sealing staple and suture lines, and some of these products also are being employed as general hemostatic agents to control bleeding in the surgical field. Manufacturers have also developed surgical sealants and glues that are designed for specific procedures – particularly those in which staples and sutures are difficult to employ or where additional reinforcement of the internal suture/staple line provides an important safety advantage.Suture-line-pixelated

Surgical sealants are made of synthetic or naturally occurring materials and are commonly used with staples or sutures to help completely seal internal and external incisions after surgery. In this capacity, they are particularly important for lung, spinal, and gastrointestinal operations, in which leaks of air, cerebrospinal fluid, or blood through the anastomosis can cause numerous complications. Limiting these leaks results in reduced mortality rates, less post-operative pain, shorter hospital stays for patients, and decreased health care costs.

Although some form of suturing wounds has been used for thousands of years, sutures and staples can be troublesome. There are procedures in which sutures are too large or clumsy to place effectively, and locations in which it is difficult for the surgeon to suture. Moreover, sutures can lead to complications, such as intimal hyperplasia, in which cells respond to the trauma of the needle and thread by proliferating on the inside wall of the blood vessel, causing it to narrow at that point. This increases the risk of a blood clot forming and obstructing blood flow. In addition, sutures and staples may trigger an immune response, leading to inflamed tissue, which also increases the risk of a blockage. Finally, as mentioned above, sutured and stapled internal incisions may leak, leading to dangerous post-surgical complications.

These are some of the reasons why surgical adhesives are becoming increasingly popular, both for use in conjunction with suture and staples and on a stand-alone basis. As a logical derivative, surgeons want a sealant product that is strong, easy-to-use and affordable, while being biocompatible and resorbable. In reality, it is difficult for manufacturers to meet all of these requirements, particularly with biologically active sealants, which tend to be pricey. Thus, for physicians, there is usually a trade-off to consider when deciding whether or not to employ these products.

Screen Shot 2014-12-29 at 9.28.14 AMClosure of general surgical wounds (internal or external) is largely accomplished by a combination of surgical tapes, sutures & staples and, increasingly, surgical sealants and glues. For the reasons discussed, the rates of technology development and adoption among these causing a relative but not absolute decline of sutures and staples revenues worldwide.

Surgical sealants, glues, and hemostats can be divided into several different categories based on their primary components and/or their intended use. From a practical standpoint, they may be subdivided by composition into products containing biologically active agents, products made from natural and synthetic (nonactive) components, and nonactive scaffolds, patches, sponges, putties, powders, and matrices used as surgical hemostats.


Data drawn from MedMarket Diligence, LLC, Report #S192, “Worldwide Surgical Sealants, Glues, and Wound Closure Markets, 2013-2018.” See link.

 

Medtech fundings for December 2014

Fundings for medical technologies in December 2014 reached $789 million, led by the enormous $410 million funding of Neusoft Medical, part of an overall $610 million funding of China’s Neusoft. The “lesser” fundings for the month include the $59 million funding of INSIGHTEC, the $50 million funding of CardioKinetix (by Edwards Lifesciences), and the $34 million funding of Xeltis AG.

Below are the top fundings for the month:

Company, funding Product/technology
Neusoft has raised $610 million in funding, with $410 million to be applied to its Neusoft Medical company, according to Neusoft Imaging in CT, MRI, X-Ray, ultrasound and PET
INSIGHTEC has raised $59 million in a round of funding according to the company Magnetic resonance-guided focused ultrasound treatment in neurology, oncology, and gynecology
CardioKinetix, Inc., has raised $50 million in funding from Edwards Lifesciences according to the companies Catheter-delivered intraventricular implant for the treatment of congestive heart failure
Xeltis AG has raised $34 million in a Series B round of funding according to press reports Endogenous tissue growth stimulated by synthetic biodegradable implants
Coventus Orthopaedics, Inc., has raised $24 million in a round of funding according to press reports Self-expanding device for fracture fixation

For the complete list of medtech fundings in December 2014, see link.

Medtech fundings for the full year 2014 reached $5,951 million, up 5% over the 2013 total. The six year trend in medtech funding, with the linear trendline, is shown below.

Screen Shot 2015-01-02 at 11.19.12 AM

For a historical list of the individual fundings in medtech, by month, since 2009, see link.