PatientSafe Solutions (San Diego) said it has raised $30 million in Series B-1 financing. TPG Biotech, a science-based venture investment arm of the global private equity firm TPG Capital, led the round. PatientSafe develops patient safety solutions intended to help eliminate hospital-based medical errors.
Valhalla Capital, Menlo Ventures, American River Ventures, Integral Capital Partners, and Shea Ventures also participated in the financing. PatientSafe said the funds would be used to complete development of its next generation product and further accelerate the adoption of comprehensive patient safety solutions in the U.S. hospital market.
To date, PatientSafe has raised over $70 million, Gregg Imamoto, the company's COO, told Medical Device Daily.
PatientSafe, formerly known as IntelliDOT, says it has been an "industry leader" in patient safety over the past seven years, evidenced by the market acceptance and deployment of its first generation product in nearly 90 hospitals across the country. To date, the product has been used to administer more than 55 million medication passes, the company said. According to PatientSafe, its next generation product, the PatientTouch System, is a "revolutionary" technology platform that helps hospitals provide a last line of defense against preventable errors, including medication errors, hospital acquired infections and patient falls, at the point-of-care through clinician workflow optimization and patient engagement.
"While moving forward, we are not only coming out with a new handheld device that will be more robust for the industry ... [the next generation system will include] a patient portal and some form of awareness technology," Imamoto told MDD. "And those parts are obviously still under development."
Imamoto said the new system would create what the company is calling a "cone of protection" – or, a safety bubble – that the company is trying to build around the patient. It's a virtual cone of protection, he added, so that there is an interaction between the nurse's handheld device and the patient portal that is at the patients' bedside.
The next-generation product is still too early in development to provide an anticipated timeline for when it might reach the market, Imamoto said.
"We are pleased with the tremendous level of interest in improving patient safety and our vision's ability to attract excellent investors and business partners. These investments provide the necessary resources to meet our goals while advancing our strategy to provide solutions that foster patient safety, patient and family satisfaction, and nurse satisfaction," James Sweeney, CEO/chairman of PatientSafe, said in a company statement.
"We are excited about working with PatientSafe Solutions and supporting their strategy to improve patient safety. We are confident in the technology platform and management's ability to execute," said Keith Grossman, managing director of TPG and new PatientSafe board member.
In other financing activity, CareFusion (San Diego), said it has completed its offer to exchange any and all of its outstanding $250 million aggregate principal amount of 4.125% senior notes due 2012, $450 million aggregate principal amount of 5.125% senior notes due 2014, and $700 million aggregate principal amount of 6.375% senior notes due 2019 for new 4.125% senior notes due 2012, new 5.125% senior notes due 2014, and new 6.375% senior notes due 2019 that have been registered under the Securities Act of 1933.
As CareFusion issued the $1.4 billion aggregate principal amount of initial notes in a private placement transaction, the initial notes were subject to transfer restrictions. The purpose of the exchange offer was to allow holders of the initial notes to exchange their notes for new notes that did not have these restrictions, the company noted. Following the exchange offer, CareFusion will continue to have $1.4 billion aggregate principal amount of notes outstanding.
CareFusion said the terms of the new notes issued in the offer are substantially the same as the terms of the initial notes, except that the new notes are registered under the Securities Act, have no transfer restrictions under the federal securities laws, no registration rights, no rights to additional interest and are not subject to the special mandatory redemption feature. All of the initial notes were submitted for exchange, and the company has accepted for exchange all the initial notes validly tendered and not withdrawn pursuant to the exchange offer.
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