A Medical Device Daily
Cohera Medical (Pittsburgh) reported securing $16.1 million in a Series B financing for the ongoing development of TissuGlu, a surgical adhesive for application in plastic surgery. The financing was led by Bradford Capital Partners and included participation from existing investors led by Kern Whelan Capital.
The company said the angel financing provides it with sufficient capital to advance TissuGlu into clinical trials, which are expected to begin early next year.
"Kern Whelan Capital is delighted to support this second round of financing by doubling our initial investment," said Jay Kern, operating partner. "We believe there is a huge market potential in many applications for Cohera's products."
Marty Calihan, partner in Bradford Capital Partners, said, "TissuGlu has great promise in tummy tuck and other plastic surgery indications [and] the company's core technology has significant potential for other uses, including mesh fixation and orthopedic applications."
He added, "We view Cohera Medical's unique lead product and technology chassis as having tremendous potential to meet multiple needs of surgeons and their patients for which there are few options today."
Cohera CEO Patrick Daly said, "Our closing of this significant angel financing round in the current economic environment is a testament to the potential of our surgical adhesive technology. The financing gives us the capital to move forward with our clinical program for TissuGlu and ... to continue development of our other products."
Cohera's medical products are based on a chemical design that is purely synthetic, easy to use, biocompatible and fully resorbable.
TissuGlu is a sprayable bonding agent for plastic surgery procedures. It adheres flaps of tissue after surgical procedures, eliminating the spaces where fluid accumulates and reducing wound drainage.
T2 Biosystems (Cambridge, Massachusetts), a company developing the first portable medical diagnostic products, which combine nanotechnology and miniaturized magnetic resonance (MR) technology, said it has raised $10.8 million in a Series B financing.
Proceeds from the financing will be used to accelerate the development of T2 Biosystems' rapid diagnostic platform.
The company's initial investors — Flagship Ventures, Polaris Venture Partners and Flybridge Capital Partners — were joined by new investors Partners Healthcare and In-Q-Tel in the round.
T2 Biosystems previously closed a $5.5 million Series A financing in 2006.
"We are excited about the growing recognition of the value of our unique, miniaturized diagnostic platform and that we are attracting financial commitment from investors of this caliber underscores the significant progress of our team over the past two years," said T2 CEO John McDonough.
"Our mission is to revolutionize medical diagnostics and dramatically improve patient care by enabling immediate, accurate testing for almost any health condition, in nearly any setting," McDonough said. "This funding allows us to continue to develop our initial panel of diagnostic tests and continue to advance our instrument development through beta testing."
The company also reported the addition of Stanley Lapidus to its board of directors. Lapidus is an experienced life science entrepreneur, having founded three successful life science diagnostic start-ups, including Cytyc.
"Stan ... has been an instrumental and legendary figure in the diagnostics industry for more than two decades," said McDonough. "[He] is joining our board at a very exciting time at T2, and the combination of his scientific knowledge and business acumen will serve us well as we continue to grow the business."
Lapidus said, "The breakthrough field of miniaturized MR technology represents an entirely new approach for developing highly efficient and portable diagnostics, and T2 Biosystems has all the necessary components to establish a dominant position in the space. [Its] progress to date has been extremely impressive and I am looking forward to working with the outstanding team in place to help bring this revolutionary technology to the marketplace."
T2 was founded in 2006 by renowned researchers from the Massachusetts Institute of Technology, Harvard University, Harvard Medical School and Massachusetts General Hospital.
In other financing news, ClearCount Medical Solutions (Pittsburgh), a developer of patient safety solutions for the operating room, reported the close of its $4.1 million Series A financing round. The round was led by Draper Triangle Ventures, a Midwestern-based network partner of Draper Fisher Jurvetson, a leader in seed and early-stage venture capital.
The company said it plans to use the funds to accelerate sales efforts of its RFID technology for the prevention of retained surgical sponges. ClearCount has developed the only FDA-cleared sponge counting and detection solution.
"We have partnered with an exceptional group of investors led by Draper Triangle Ventures," said CEO David Palmer. "This investment will allow us to expand our sales and marketing efforts as well as continue the development of our future products."
Mike Stubler, managing director of Draper Triangle, said, "ClearCount has developed the next generation of patient safety technology for the operating room. We believe it will become the standard of care as hospitals continue to elevate their focus on patient safety and efficiency. We are pleased to partner with the ClearCount team to accelerate the adoption of this important technology in the market."
Hospitals today have more incentive than ever to find affordable solutions toward improving patient safety and efficiency, with the Centers for Medicare & Medicaid Services and a number of private insurers no longer reimbursing hospitals for procedures associated with "never" events such as left-behind surgical sponges.
The company said a 2008 Annals of Surgery study reported that one in eight surgical cases involves an intraoperative count discrepancy, taking an average of 13 minutes to resolve, which adds to costly operating room time.
ClearCount's SmartSponge System helps to improve patient safety while improving operating room efficiency, using an extendable RFID-based platform to provide a comprehensive solution for counting and detecting surgical sponges.