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Mainstay Medical completes USD20m oversubscribed series B venture financing

Medical device company Mainstay Medical has completed an oversubscribed series B financing round for USD20m (EUR15.3m) led by Fountain Healthcare Partners.

Other new investors in the series B round include Medtronic, Capricorn Venture Partners and Seventure Partners. Existing series A investors Sofinnova Partners and Twin City Angels also participated.

This funding will advance the ongoing development of Mainstay Medical’s disruptive new medical device for the treatment of patients with chronic non-specific low back pain. As part of the financing, Mainstay Medical relocated its head office and executive leadership to Dublin, Ireland from Minneapolis, Minnesota US.

The World Health Organization reports that low back pain is the most prevalent of musculoskeletal conditions, and affects nearly everyone at some point in time. Low back pain is the number one cause of lost working days in the developed world, with 7.5 million people in the US with chronic back pain at any time, and similar numbers for Europe.

Mainstay Medical has developed a novel approach using an implantable device like a “pacemaker for the back” to restore spine stability to ameliorate pain and allow return to work.

Mainstay was founded in 2008 by entrepreneur Dr. Danny Sachs, and then under the leadership of chief executive Peter Crosby, Mainstay conducted a European Feasibility Study across four leading clinics in Europe. The promise of the new therapy was demonstrated in that Feasibility Study and in parallel the company also advanced the development of its own proprietary products, and added to its intellectual property portfolio.

Mainstay will use the proceeds of the series B financing to expand the team for product development, quality, clinical, regulatory and administration, as it moves towards its goals of achieving regulatory approval in Europe and running a global clinical trial leading to a PMA submission to the FDA in the US.

Dr. Manus Rogan, co-founder and managing partner at Fountain Healthcare Partners, says: “We are excited about Mainstay, and the potential to relieve the back pain suffered by millions of people worldwide. We are particularly pleased that Mainstay and the syndicate of international investors has recognised the economic value and attractiveness of Ireland as a location to build an innovative medical device company.” 

Crosby says: “Our early clinical results are very encouraging, and with this new investment we will be able to make great progress in advancing Mainstay’s products from concept to reality, and start to build our business.” Mr. Crosby added, “The Mainstay approach has the potential to save billions of dollars on health care expenditure, while also creating a multi-billion market for us, so it is a winning situation all around.”

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