A Medical Device Daily
Ablation Frontiers (Carlsbad, California), a privately held company focused on developing treatments for irregular heart rhythms, reported the close of a $21.8 million Series C financing led by the Novartis Venture Fund.
Additional new investors included Affinity Ventures, Hexagon Investments and Trellis Health Ventures. Previous backers Versant Ventures, Aberdare Ventures, and Pequot Ventures also participated in the round.
Ablation Frontiers has developed a portfolio of devices for treating dangerous arrhythmias without the use of imaging systems or robotics. The company recently reported the launch of commercial operations in the European Union after their Catheter Ablation System received the CE mark.
Currently, the company has focused their efforts on the treatment of atrial fibrillation — the most common type of abnormal heart beat — and is supporting clinical trials in the U.S. and Europe to demonstrate safety and efficacy in curing the disease. A proven treatment for atrial fibrillation has been described as a major unmet medical need, with market estimates of about $2 billion.
The company said the proceeds from this round will be used to fund its investigational device exemption (IDE) clinical trial in the U.S., as well as expanding commercial operations around the world.
"This funding will help us accelerate market growth internationally while driving clinical activity for our recently-initiated IDE study," said CEO Keegan Harper.
Founded in 2004, the company is focused on developing and commercializing products for the treatment of cardiac arrhythmias.
Flagship Global Health (New York), a company that provides patient advocacy, comprehensive differential diagnosis and priority access to doctors, reported that it has closed on a $15 million investment from FrontPoint Partners Healthcare funds, a subsidiary of Morgan Stanley.
"We will use these funds to consummate several important strategic relationships, to introduce a number of new and highly innovative products and above all to provide the needed resources to supercharge Flagship's sales and marketing team and programs," said Fred Nazem, CEO/chairman of Flagship Global Health,
Flagship currently provides two core offerings — the Emergency Care Direct and Specialist Care Direct plans that allow subscribers to take advantage of benefits such as emergency air evacuation services if ill, or injured when traveling abroad, as well as priority appointments with world-renowned specialists, and other life-saving advantages designed to treat and cure patients more quickly and effectively.
In other financings news,Pacer Health (Miami), owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities, said it has closed on a new $5.5 million five-year secured credit facility with Cornell Capital Partners. The new facility replaces a $1 million, three-year credit facility that was set to expire on April 1, 2009 and a $1 million, three-year credit facility that was set to expire on May 5, 2009, which were both issued by Cornell Capital.
The debentures, which are convertible at 2 cents prior to maturity and at the lower of 2 cents or 80% of the lowest volume weighted average price of the common stock for the 15 trading days immediately preceding the maturity date, require Pacer to register certain shares of common stock for resale by selling security holders of its common stock, including shares issued to Cornell Capital.