A Medical Device Daily
Paradigm Spine (New York), a developer of non-fusion spinal implant solutions, said it has completed a $21.5 million financing, consisting of a $15 million debt facility and $6.5 million equity. Fifth Third Bank was the sole lender in the $15 million venture debt funding. The $6.5 million of equity was led by Praefinium Group, a global asset management group specializing in high-growth opportunities, and Trevi Health Ventures, a venture capital firm specializing in healthcare investments.
Paradigm said it would use the proceeds from this financing to strengthen the U.S. sales infrastructure, fund the company's ongoing U.S. clinical trial of the coflex device, and drive further international expansion of the company's product portfolio. The company said it believes this financing will carry it through to profitability in 2010.
"Paradigm's ability to raise capital despite this current economic situation reinforces the strength and quality of our organization, and the confidence our investors have in the success of the company," said Marc Viscogliosi, the company's CEO/chairman. He said Paradigm has demonstrated a strong track record over the past four years, with sales growing at a CAGR of more than 60% from 2005 to 2008. Worldwide revenues grew 63% 2Q09 compared to 2Q08 and growth was more than 15% when comparing sequentially 2Q09 with 1Q09, Viscogliosi noted. "We are particularly pleased with this performance despite economic headwinds and slowing surgical volumes and expect this growth to continue with the expansion of the U.S. sales team," he said.
Paradigm also reported the promotion of Matt Stuttle to VP of U.S. Sales. Previously Stuttle has held various positions in sales, sales management, and director level roles with Forest Pharmaceuticals, Kyphon, and most recently Medtronic Spine and Biologics.
Paradigm says it is focused on the development of non-fusion solutions for the treatment of spinal conditions and diseases.
In other financing activity, Cardiorobotics (Pittsburgh), a company developing snake robot technologies for use in a wide range of surgical and interventional applications, said it has closed on an $11.6 million private equity Series A round of financing. The round was led by Eagle Ventures and its co-investors, the Pittsburgh Life Sciences Greenhouse and the Slater Technology Fund and affiliated investors.
Funds raised in this round will support the advancement of the clinical product, a clinical feasibility trial on humans, and completion of commercial product for regulatory approval in the U.S. and Europe, the company noted.
"This investment will be used to advance our core product, the cardioARM, toward commercialization," said Dr. Samuel Straface, president/CEO of Cardiorobotics. "We're pleased to have Eagle Ventures, the Pittsburgh Life Sciences Greenhouse, and the Slater Technology Fund and affiliated investors share our vision in providing single-port, off-pump treatments for patients with heart arrhythmias."
Cardiorobotics says its products have "very high degrees of freedom of movement, are tele-operated, and are able to steer a self-supported, non-linear path from a single access port and deploy an array of special tools and imaging technologies."
Within the medical field, the company plans ultimately to serve a number of different specialist areas, including: minimally-invasive cardiac surgery, cardiac electrophysiology, NOTES and a range of single-port abdominal and thoracic procedures.