A Medical Device Daily
Entellus Medical (Maple Grove, Minnesota), a company that makes minimally invasive solutions for treatment of patients with chronic sinusitis, reported the completion of a $35 million round of fund raising. The new financing was led by Covidien Ventures, who joined existing investors SV Life Sciences, Essex Woodlands, Split Rock Partners, and Greenspring Associates. Proceeds from the financing will be used to fund the company's ongoing operations and commercialization of Entellus' multiple product lines, which are used by Ear, Nose, & Throat (ENT) physicians to dilate narrowed or obstructed sinus drainage pathways.
The company's product lines include the XprESS multi-sinus dilation tool, which offers ENT physicians a tool to trans-nasally treat the frontal, sphenoid or maxillary sinuses in either a doctor's office or operating room. The company's FinESS product line is designed for use in a doctor's office and enables ENT physicians to directly visualize and dilate the drainage path from the maxillary sinus. The maxillary sinus is the most common sinus that undergoes surgical intervention.
A study published in 2011 showed that the FinESS procedure performed in a doctor's office was safe, well-tolerated by patients and provided long-term relief of sinus-related symptoms.
The procedures in which Entellus products are exclusively used are covered by many health insurance plans which together constitute approximately 150 million covered lives in the U.S. When performed in the doctor's office, these procedures are less costly to the healthcare system than traditional endoscopic sinus surgery performed in hospital or surgicenter operating rooms.
In other financings, Neovasc (Vancouver, British Columbia) said that it has completed a previously reported a non-brokered private placement of 4,720,500 equity units at the price of $1 per unit for aggregate gross proceeds of about $4,720,500. Reflecting strong demand, the total amount of the financing was increased from the previously reported maximum of $4 million.
Proceeds of the offering will be used to complete the COSIRA clinical trial, which is designed to provide randomized, controlled safety and efficacy data for the Neovasc Reducer, an innovative implantable product for treating refractory angina, as well as to advance Neovasc's Tiara project to develop a novel transcatheter medical device to treat mitral valve heart disease.
Each unit consists of one common share of Neovasc stock and one-half of one common share purchase warrant of Neovasc stock. Each whole warrant entitles the holder thereof to purchase one common share of Neovasc stock at the exercise price of $1.25 per share for a period of two years after the closing date of the offering. The securities issued are subject to a four-month hold period from the date of issuance and the placement has been approved by the TSX Venture Exchange.
Participants in the placement included OPKO Health (Miami) which invested $2 million and Gagnon Securities, whose members invested $1.42 million. Company directors and officers purchased 95,000 of the equity units issued.