A Medical Device Daily
Transcend Medical (Menlo Park, California) an ophthalmic device company dedicated to delivering breakthrough advances in the treatment of glaucoma, reported that it has closed a $35 million Series B round and is continuing the rapid development of its Transcend CyPass System, a proprietary system for the minimally-invasive treatment of glaucoma.
Lead investor HLM Venture Partners, along with other new investors Canaan Partners, Technology Partners and Latterell Venture Partners made significant contributions to this round of financing, which was also strongly supported by current investors Morgenthaler Ventures and Split Rock Partners.
"Completing this round is a testament to the progress of our technology and a strong validation of its potential to impact the future of glaucoma treatment," said Brian Walsh, president/CEO of Transcend. "We are now well-capitalized to accomplish all initial clinical and commercial milestones for the company."
The Transcend CyPass System is being developed to both replace current glaucoma therapies, which either lack effectiveness or are very invasive, and to expand treatment to a much larger patient population. Transcend is focused on a less invasive procedure using a novel, proprietary system that reduces intraocular pressure.
Transcend was the first company to be spun out of ForSight Labs (Also Menlo Park), an incubator solely focused on ophthalmic innovations. Transcend received $7 million in Series A funding from investors back in 2006 (Medical Device Daily, Nov. 10, 2006).
In other financing news:
• I-Therapeutix (Waltham, Massachusetts) said it has closed a $15 million Series C financing. The round was led by Polaris Venture Partners, with continued participation by existing investors, Versant Ventures and SV Life Sciences.
The proceeds will be used to commercialize I-ZIP Ocular Bandage in the U.S. and to develop sustained drug delivery products for treatment of ophthalmic diseases and ocular infections.
"We are excited about working with I-Therapeutix to meet significant medical needs in ophthalmology. The company offers a combination of an experienced team with a successful track record, outstanding technology and product opportunities and a compelling business model," said Alan Crane, general partner at Polaris Venture Partners, who will join the company's Board.
I-Therapeutix is focused on the development of ophthalmic therapeutic products using its proprietary hydrogel technology. It is also developing sustained ocular drug delivery vehicles utilizing its hydrogel polymer technology. The company was founded in November, 2006. The I-ZIP Ocular Bandage has already gained CE-mark approval and is undergoing pivotal clinical investigation in the U.S.
• Cytori Therapeutics (San Diego) entered into an equity agreement with Seaside 88. Seaside has committed to purchase up to 7.15 million Cytori common shares, in a series of closings every two weeks in the amount of 275,000 shares each for a total of up to 26 purchases. Cytori and Seaside expected to close the first sale of 275,000 shares for gross proceeds of $852,000 yesterday. Cytori has the right to discontinue the agreement between the 13th and 14th closings, based on the company's assessment of its financing needs at that time.
"This infusion of capital in Cytori is intended to support potential near and longer-term revenue growth," said Cytori CFO Mark Saad. "Proceeds will be used to, among other things, accelerate marketing efforts and continue our investment in clinical trials to broaden the number of potential applications for which the Celution System may be applied. Because this financing could address Cytori's cash operating requirements through 2010, it allows management to focus even greater efforts on growing the business and enables the company to price future closings with Seaside following the achievement of important milestones and value drivers."
Cytori develops regenerative medicine technologies, which provide real-time, point-of-care access to clinical grade regenerative cells. The Celution-related products are sold throughout Europe and Asia primarily into the cosmetic and reconstructive surgery market and are under evaluation by the FDA.
• St. Rose Hospital (Hayward, California) received $20 million in capital from UnitedHealth Group (Minnetonka, Minnesota) and its PacifiCare of California subsidiary to further the hospital's efforts in delivering quality, affordable healthcare services to the communities it serves in Alameda County.
The $20 million purchase of St. Rose Hospital's taxable and tax-exempt bonds is part of UnitedHealth Group's California Health Care Investment Program, a 20-year, $200 million commitment to provide access to capital for entities throughout the state that provide vital health care services to their communities.
The hospital will use a portion of the proceeds of the bonds, together with its own funds, to: build out the second floor of the Sherman L. Balch (formerly St. Joseph) Pavilion; complete a seismic retrofit for the hospital's main facility; remodel the fifth floor of the hospital's main facility to add 30 single-patient rooms; and acquire necessary capital equipment.
Loan insurance backing from the Cal-Mortgage Loan Insurance Division of the Office of Statewide Health Planning and Development, along with the participation of UnitedHealth Group, provided the hospital with lower-cost financing for the overall $42 million bond issue.
• BioMed Realty Trust (San Diego) reported the closing of a new $18 million loan secured by the company's 9865 Towne Centre Drive property in San Diego.
Construction of 9865 Towne Centre Drive, a state-of-the-art laboratory and office facility, was completed in 2Q08.
The facility was built for, and is fully leased to Illumina, one of San Diego's largest biotechnology companies, which is focused on developing, manufacturing and marketing next-generation tools for the large-scale analysis of genetic variation and biological function. Illumina leases a total of about 193,000 square feet through October 2023 at the campus.
BioMed is a real estate investment trust focused on providing real estate to the life science industry.