September 2009 Medtech Financings

With medtech investments in July and August each at over $400 million, I had hopes (expectations?) that September would continue the trend, but through Sept. 30, medtech financings for the month totaled "only" $328 million. Of course, this is still a healthy amount, especially considering that September investment tends to be lower on a relative basis anyway. 

 

September 2009 Medtech Financings: 

  • Endosense, Inc., has raised $36 million in a Series B financing (catheter ablation of cardiac arrhythmias)
  • Athena Feminine Technologies has raised $2 million in a Series A financing (pelvic floor electrical stimulation for treatment of urinary incontinence) 
  • ValenTx, Inc., has raised $22 million in Series B financing (minimally invasive treatment of obesity)
  • LifeWave Hi-Tech Medical Devices Ltd has raised $1.5 million in a secondary offering (electrical stimulation device for chronic wound treatment)
  • Uptake Medical, Inc., has raised $3.4 million of a planned $13.4 million financing according to a regulatory filing (broncoscopic catheters for treatment of emphysema and chronic obstructive pulmonary disease)
  • Nuveta, Inc., has raised $800K in a Series A financing (in vitro fertilization technologies)
  • Virtual Ports, Ltd., has raised $2.6 million in early stage financing (developing surgical endoscopy technology)
  • Pervasis Therapeutics, Inc., has raised $17 million in a Series C financing (Vascugel, a product derived from tissue-engineered allogeneic endothelium for enhancing blood vessel repair)
  • Calypso Medical Technologies, Inc., has raised $50 million in venture capital financing (tumor localization technology for use during external beam radiation therapy)
  • Update Medical, Inc., has raised $3.4 million of a planned $13.3 million financing (bronchoscopic lung volume reduction treatment for COPD)
  • NewCardio, Inc., has raised $2.9 million in a private placement (platform technology for improvement in 12-lead EKG)
  • Spinal Kinetics, Inc., has raised $5.3 million in a financing round (artifical discs for treatment of spinal injuries and degenerative disc disease)
  • Gamma Medica-Ideas, Inc., has raised $24 million in its institutional investor financing round (digital molecular imaging system for detection of cancer)
  • Micell Technologies, Inc., has received a $15 million investment from St. Jude Medical (drug-coated stents designed to be less thrombogenic)
  • Monteris Medical, Inc., has raised $2 million of a planned $3.5 million round of financing (tumor ablation applicable to brain)
  • Ionix Medical, Inc. (formerly OncoStim), has raised $18.3 million in financing according to a regulatory filing (minimally invasive device for treatment of BPH and prostate cancer)
  • Sleep Solutions, Inc., has raised $20 million according to a regulatory filing (sound analysis technology for in-home monitoring of sleep-disordered breathing)
  • MedShape Solutions, Inc., announced that it had closed $10 million in equity funding (memory shape device technologies in orthopedics)
  • Zogenix, Inc., closes $51 million Series B funding (needlefree subcutaneous drug delivery system)
  • Urodynamix Technologies Ltd raises $1.5 million in private placement (near infrared spectroscopy in diagnosis and treatment of urinary incontinence)
  • Spartek Medical, Inc., has raised $3.2 million in financing according to a regulatory filing (minimally invasive treatment of degenerative disc disease)
  • ActiViews Ltd has raised $5 million in a financing round (optical guidance in CT, fluoroscopy and MRI for oncology diagnosis)
  • ThermalTherapeutic Systems, Inc., has raised $2.75 million in a new round of funding (portable device to heat and circulate sterile fluids)
  • Blue Belt Technologies, Inc., has raised $2.4 million in a Series A round of funding (surgical instruments in orthopedics and neurosurgery)
  • Inspired Surgical Technologies, Inc., has raised $1 million in financing according to a regulatory filing (photonic based surgical technologies platform)
  • Satiety, Inc., has raised $25.3 million of a planned $33 million round of financing (obesity device) 

Posted via email from medmarket’s posterous

September 2009 Medtech Financings (to date)

 

  • Endosense, Inc., has raised $36 million in a Series B financing (catheter ablation of cardiac arrhythmias)
  • Athena Feminine Technologies has raised $2 million in a Series A financing (pelvic floor electrical stimulation for treatment of urinary incontinence) 
  • ValenTx, Inc., has raised $22 million in Series B financing (minimally invasive treatment of obesity)
  • LifeWave Hi-Tech Medical Devices Ltd has raised $1.5 million in a secondary offering (electrical stimulation device for chronic wound treatment)
  • Uptake Medical, Inc., has raised $3.4 million of a planned $13.4 million financing according to a regulatory filing (broncoscopic catheters for treatment of emphysema and chronic obstructive pulmonary disease)
  • Nuveta, Inc., has raised $800K in a Series A financing (in vitro fertilization technologies)
  • Virtual Ports, Ltd., has raised $2.6 million in early stage financing (developing surgical endoscopy technology)
  • Pervasis Therapeutics, Inc., has raised $17 million in a Series C financing (Vascugel, a product derived from tissue-engineered allogeneic endothelium for enhancing blood vessel repair) 
  • Calypso Medical Technologies, Inc., has raised $50 million in venture capital financing (tumor localization technology for use during external beam radiation therapy)

With both July and August medtech financings in excess of $400 million, it was perhaps wishful thinking on my part that September stay on pace, but being that investment in September has a tendency to be depressed (or so I have heard), the month-to-date financing for September of just over $100 million has the month well off the last two months’ torrid pace.

Posted via web from medmarket’s posterous

Venture capital still a big deal for the US economy, study says

Venture capital still a big deal for the US economy, study says

September 16, 2009 | Anthony Ha |

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Venture capital remained crucial to national economic growth over the last two years, according to a new study conducted by IHS Global Insight and commissioned by the National Venture Capital Association.

nvca-report-1I doubt many VentureBeat readers (despite criticism they might have of the venture industry) would argue that venture capital and startups aren’t important to the US economy. Still, the NVCA compiles this data every two years, presumably to remind lawmakers that they should listen to the VC industry, even if it seems to be only a tiny part of the financial sector. (The report’s authors love the metaphor of ripples expanding from a single raindrop hitting the surface of a lake.)

The study says:

  • Venture-backed companies outperformed the overall economy from 2006 to 2008. Jobs at venture-backed companies grew 1.6 percent, compared to 0.2 percent in the entire US private sector. And revenue at those companies grew 5.2 percent, compared to 3.5 percent in the private sector.
  • Venture capital grows industries “from scratch.” For example, the $4.1 billion of venture investments in cleantech in 2008 is helping to turn the technology into a real industry.
  • Venture capital’s impact is spreading across the country through regional venture hubs. Unsurprisingly, California and New York are the states with the most jobs and revenue at venture-backed companies, but they’re followed by Texas (918,451 jobs), Massachusetts (651,239) and Georgia (621,181). Entrepreneurial and venture communities are growing in the Pacific Northwest, the mid-Atlantic, and the Southwest.

nvca-report-2After the report has (hopefully) convinced you of venture capital’s significance, it closes with a list of the NVCA’s legislative concerns: “intellectual property protection, open trade provisions, immigration support for highly-skilled workers and encouragement of capital formation.”

Previous Story: Report: Twitter close to another round at $1 billion valuation

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In my mind, there are a number of key barometers to the state of economic growth and development in the healthcare field. Two certainly related ones are the formation of medtech startups and the rate of venture capital investment in medtech. See medtech financings for August and July, suggesting medtech is on the upswing with VC. (For reference, see our list of venture capitalists with focus on healthcare at link.)

Posted via web from medmarket’s posterous

September 2009 Medtech Financings (to date)

Arguably a slow start to September’s medtech financings, but I nonetheless expect it to pick up during the month, if not to the $400+ million month financings of July and August.

  • Endosense, Inc., has raised $36 million in a Series B financing (catheter ablation of cardiac arrhythmias)
  • Athena Feminine Technologies has raised $2 million in a Series A financing (pelvic floor electrical stimulation for treatment of urinary incontinence) 
  • ValenTx, Inc., has raised $22 million in Series B financing (minimally invasive treatment of obesity)
  • LifeWave Hi-Tech Medical Devices Ltd has raised $1.5 million in a secondary offering (electrical stimulation device for chronic wound treatment) 

Recent reports from MedMarket Diligence:   

New: Worldwide Wound Management 2009-2018

Worldwide Coronary Stents

Worldwide Surgical Sealants, Glues, Wound Closure

Posted via email from medmarket’s posterous

Investment upswing: medical technology fundings picking up pace

The aggregate amount of medtech investment, after taking a hit early this year from a pull back by venture capital, is now on the rise, with two months each of $400+ million investment.

Investments and other financings over the first eight months of 2009 in medical device technologies as well as those that are complementary or directly compete with device technologies have demonstrated increases since a low point in May 2009.  Investment in September 2009 can be expected to also be in the $400+ million range.  The month-by-month financing aggregate is shown graphically below.

 

Source: Compiled by MedMarket Diligence, LLC

 

A wide range of technologies are the subject of investment (see the individual investments comprising August and July investments).

 

Investments and financings in medical technology reach $388 million for August 2009

For the month of August 2009, financings at medical technology companies totaled $388 million.  Below, see the individual financings:

  • Ultrasound Medical Devices, LLC, has raised $1.2 million in an undisclosed financing round (ultrasound for diagnosis of coronary heart disease)
  • Freedom Meditech has added $250K to its Series A financing round (glucose measurement device)
  • SmartCells, Inc., has raised $1.15 million from an insider funding round, and has received $850K in an NIH grant (insulin bound to a "polymer-therapeutic" to produce glucose-concentration-specific insulin release)
  • Acrobot Co., has received an undisclosed amount of financing from existing shareholders (computer-assisted orthopedic surgery device)
  • Micell Technologies has raised $5 million in a Series B financing (device surface modification technologies)
  • SurgiQuest, Inc., has raised $3.33 million in new equity financing (surgical technologies)
  • ForSight Vision4 (vision technology spinout from ForSight Labs) has raised $6 million in venture capital funding (advanced eye care)
  • Cardiorobotics, Inc., has raised $11.6 million in financing (remote operated articulating device for use in cardiac surgery, others)
  • HeartWare International, Inc., has raised $55 million in private placement funding (miniature left ventricular assist devices/pumps)
  • NiTi Surgical Solutions has raised $18.5 million in a Series F round of financing (nitinol-based devices for anastomoses)
  • Flex Biomedical, Inc., has raised $985K in equity ($835K) and debt ($150K); (polymer-based alternatives to hyaluronic acid for treatment of osteoarthritis)
  • ArthroCare Corp. has received $75 million in Series A funding from the equity investment arm of JPMorgan Chase (Coblation surgical technology for removing and treating tissue in arthroscopy, spine and ENT)
  • Embrella Cardiovascular has added $1.6 million to its Series B financing round, bringing the total to $6.7 million (embolic protection devices)
  • M2 Group Holdings has raised $6 million of an anticipated $10 million round of funding (disposable insulin delivery devices)
  • BridgePoint Medical, Inc., has raised $6.1 million according to a regulatory filing (devices for treatment of chronic total occlusions)
  • Coherex Medical Closes $16.5 Million Series B Preferred Stock Financing (technology for closure of patent foramen ovale)
  • Neuronetics, Inc., has raised $30 million according to a regulatory filing (pulsed magnetic field system for treatment of depression)
  • Benvenue Medical, Inc., has raised $4 million in a debt and equity financing according to a regulatory filing (minimally invasive therapy to treat orthopedic diseases)
  • CardioMEMS, Inc., has raised $22 million in a new round of funding (implantable technology for management of cardiovascular disease)
  • MAKO Surgical Corp. has raised $58.36 million in a public offering of common stock (orthopedic minimally invasive joint market)
  • Barosense, Inc., has raised $30 million in a Series D financing according to a regulatory filing (minimally invasive device for treatment of obesity)
  • ProFibrix Raises US $11 Million in Series B Financing (dry powder topical tissue sealant)
  • BrainStorm Cell Therapeutics Secures $450K Funding to Reach Clinical Trials for ALS (adult stem cell treatment for amyotropic lateral sclerosis)
  • Integrated Medical Systems Receives $1.1 Million From the U.S. Department of Defense for Critical Enhancements of the World’s First ‘Suitcase’ Intensive Care Unit (portable unit for providing adult and pediatric intensive care unit functionality)
  • BioSyntech, Inc., has raised raised $1.4 million in a private placement (biotherapeutic thermogels for use in regenerative medicine)
  • Pivot Medical, Inc., has raised $6 million in new funding according to a regulatory filing (stealth company pursuing non-spine orthopedic technologies)
  • Veran Medical Technologies, Inc., has raised $1.4 million of a planned $2 million financing round, according to a regulatory filing (image guided surgical navigation)
  • iWalk Inc. has raised $20 million in a Series B financing (self-contained robotic prosthetic ankle)

 

Editor’s note:  With the addition of the iWalk financing at the end of August 2009, total financings in medtech for the month rose to $408 million.

Medical Device Companies Lobbying Congress and Other Evils

Much has been made lately, at least in headlines, about the amount of money spent by medical device companies in lobbying the U.S. government. ("Medtronic spent over $1M lobbying gov’t in 2Q‎", "Boston Scientific spent $480K lobbying gov’t in 2Q‎").  No caveat is placed on these headlines, as if they self-sufficiently scream "too much!"  

Put succinctly, here is the problem I have with these headlines.  They are intended to induce a reaction, as if these companies have attempted to bribe the government, or worse.

For companies with billions of dollars in annual revenue, it would be foolish and irresponsible to not spend this kind of money to ensure that their interests are represented in Congress, which, by virtue of being beholden to voters, shifting political winds and other capricious forces, can sometimes pass contradictory, damaging and illogical legislation.

Case in point (legislation, that is, not necessarily illogical), the Medical Device Safety Act, legislation to remove the shield protecting manufacturers from liability lawsuits from product failures.  To be on record, I endorse MDSA for its principles of disassociating the FDA’s approval of safety and efficacy from the demands that products be made free from foreseeable defects and other potential causes of injury and death.  But, if the industry does not make its case for the legislation that is enacted, how it is enforced or other aspects of the law, then the legislation may place needless burden on the device industry, which in turn may limit resources for continued medical product development.

Of course, it is not en vogue to be in support of the medical device industry.  Much more attention has been given to product failures and, in the midst of one of the worst recessions the country has every faced, the industry’s steady and continued profitability (despite the fact that there have been a plethora of medical device company bankruptcies, see below, since this recession began) .  The truth is that it is in the interest of the industry to defend their economic interests which, if effectively accomplished, also protect the interests of patients in the long run.  The industry is not well served by being shielded from its obligation to responsibly manufacture products.  Conversely, patients demand, almost irrationally, solutions to their healthcare problems as if their bodies are under warranty by physicians and manufacturers.  Medical device and other healthcare product manufacturers are only too happy to innovate and attempt to serve this demand, but if the legislation to reign in manufacturers becomes the least bit restrictive, then innovation, which has already been hit by the recession’s adverse financing, will be markedly diminished.


Recent healthcare company bankruptcies (or possible soon):  Innovative Spinal Technologies, Xtent, Adaltis, Axcess Medical Imaging, Scantek Medical, Maxxim Medical, Artes Medical, Haemacure, Argolyn Bioscience, Aspen Medtech, Allux Medical, Luna Innovations.

Venture Capital in Healthcare

(See the 2010 updated list at link.)

Recent MedMarket Diligence Reports

Diabetes Management Worldwide

Ablation Technologies Worldwide

Tissue Engineering and Cell Therapy Worldwide

Worldwide Wound Management

Worldwide Coronary Stents

Worldwide Surgical Sealants

Occasionally, I update my list of venture capital groups, selected incubators and other sources of funding or other support in healthcare, especially for medical device and other life science companies. Most though not all of the links below are directly to each company’s portfolio page, and whenever a VC’s portfolio is segmented by industry (medical device or healthcare versus information tech or other), the links are to the healthcare page(s), but some VCs provide portfolio pages are lists of their investments, with no differentiation by industry.

21 Ventures
Aberdare Ventures
Accuity Medical Ventures
Adams Street Partners
Advantage Capital
Alloy Ventures
AlphaDev
Alta Partners
Andcor Companies
Angel Healthcare Investors
Apax Partners
Apjohn Ventures
Arboretum Ventures
Arcapita Ventures
Archangel BioVentures
Ascension Health Ventures
Ascent Biomedical Ventures
Asset Management Company
Aurora Funds
Aweida Venture Partners
Bain Capital Ventures
Band of Angels
Bay Angels Investment Group
Bay City Capital
Berkeley Ventures
BioAdvance
Bioenterprise
BioGeneration Ventures
BioStar Ventures
Borealis Ventures
Boulder Ventures
BrainsToVentures AG
California Technology Ventures
Canaan Patners
Care Capital
Center for Innovative Technology
Charter Life Sciences
Chicago Growth Partners
CHL Medical Partners
CMEA Ventures
Crossbow Ventures
De Novo Ventures
Delphi Ventures
Domain Associates
Early Stage Partners
Earlybird
EDF Ventures
Emergent Growth Fund I
Emergent Growth Fund II
Emergent Technologies
Enterprise Partners Venture Capital
Finistere Partners
FirstMark Capital
Flagship Ventures
Fletcher Spaght
Forward Ventures
Foundation Medical Partners
Foundry
Frazier Healthcare Ventures
Funk Ventures

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Galen Parnters
Giza Venture Capital
Global Healthcare Investments & Solutions
Golden Pine Ventures
Grand Angels
Greylock Partners
H.I.G. Ventures
Hamilton Bioventures
Harbert Venture Capital
Hatteras Venture Partners
Hercules Technology Growth Capital
Highland Capital Partners
HLM Venture Partners
iNovia Capital
Intersouth Partners
Interwest Partners
Jerusalem Ventures InnoMed Fund
JumpStart
Kaiser Permanente National Venture Development
KPCB
Latterell Venture Partners
Leader Ventures
Life Science Angels
Longitude Capital
Magic Venture Capital
Massey Burch Capital
Mentortech Ventures
Mesa Verde Venture Partners
Misgav Venture Accelerator
Mitsui Ventures
Montagu Newhall Associates
Montreux Equity Partners
MPM Capital
NBGI Ventures
New Enterprise Associates
New Leaf Partners
New World Angels
NewSpring Ventures
NGN Capital
Noro-Moseley Capital
North Bay Angels
North Coast VC
Oakwood Medical Investors IV
Onset Ventures
OrbiMed
Originate Ventures
Oxford Bioscience Partners
Oxford Capital Partners
Pappas Ventures
Pasadena Angels
Paul Capital Healthcare
Phenomenelle Angels Fund
Piedmond Angel Network
Pinnacle Ventures
Pitango Venture Capital
Pittsburgh Equity Partners
Polaris Ventures
Prism Venture
Prospect Venture Partners
Psilos
PTV Sciences
Quaker BioVentures
Radius Ventures
Rain Source Capital
Sacramento Angels
Sanderling Ventures
Sante Ventures
Saratoga Ventures
Seed Capital Fund of Central NY
Seroba BioVentures
Shalon Ventures
Sightline Partners
Skyline Ventures
Solstice Capital
Southeast Techventures
Split Rock Partners
Spray Partners
Springboard Capital
St. Louis Arch Angels
SterlingStart
Stockton Partners
Stonehenge Capital
Sutter Health Ventures
SV Life Sciences
Sycamore Ventures
Synecor
Tech Coast Angels
Techno Venture Management GmbH
Telegraph Hill Partners
The Carlyle Group
The Halo Fund
Third Rock Ventures
Thomoas McNerney & Partners
Three Arch Partners
Toucan Capital
Trevi Health Ventures
Triathlong Medical Ventures
Tricardia Ventures
Tullis Health Investors
US Venture Partners
Vanguard Ventures
Venrock
Venture Investors
Versant Ventures
Versant Ventures
Village Ventures
Vitalife Life Sciences VC
Vivo Ventures
vSpring Capital
Warburg Pincus
Wellington Partners Venture Capital
WI Harper
Windamere Venture Partners
Wisconsin Investment Partners
Xenia Venture Capital
Yankee Equity Solution
Yellowstone Capital

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(Relatively) slow start to August medtech financings

Admittedly, there were some big medtech financings in June and July, but it appears that August financings are off to a relatively slow start.

aug09-financings-to-date

For regular updates to the August medtech financings, see also link.

August 2009 medtech financings, to date

Medical technology financings, encompassing financings of any type for companies in the medical device and complementary or directly competitive industries, took off slower in August (at least compared the robust $440+ million July financings).  However, new financings are picking up the pace (e.g., $55 million for NiTi Surgical Solutions).  Financings will be regularly updated at link.

aug09-financings

Source: MedMarket Diligence, LLC