Vertos Medical, a specialist in treatments for lumbar spinal stenosis (LSS), has closed a financing of almost USD23m.
The proceeds will be used to fund US commercial expansion and the launch of mild in European markets.
The financing was led by Pitango Venture Capital and joined by existing investors including ONSET Ventures, CHL Medical Partners, Foundation Medical Partners, Mercury Fund and Aweida Venture Partners.
"We are pleased to partner with Pitango, an experienced investor with global presence, and we are fortunate to have the ongoing commitment and confidence of our existing investors," says James Corbett, Vertos’ president and chief executive officer.
The recent financing will support continued growth in the adoption of mild, a minimally invasive procedure which has a reported positive-response rate of 81 per cent. Performed through an incision the size of a baby aspirin, mild has been proven safe, effective and durable in 11 clinical studies and more than 16 published peer-reviewed journal articles. Since the proprietary device kit received 510(k) clearance from the Food and Drug Administration in 2008, more than 15,000 people have been treated with mild in the US.
"We have an extraordinary opportunity to address a frequent and often debilitating condition with a low-cost, efficacious outpatient procedure. We intend to build on current momentum and continue our efforts to provide mild as a new treatment option for LSS patients and establish it as a standard of care," Corbett says.
Ittai Harel, general partner at Pitango Venture Capital, who has joined the company’s board, says: "Vertos Medical presents a compelling investment opportunity. We are enthusiastic about the novel mild procedure and are especially impressed by the team’s progress and achievements to date."
LSS is primarily a degenerative, age-related narrowing of the lower spinal canal that causes pressure on the nerves, leading to pain and reduced mobility. It is a common condition, with more than 1.2 million Americans diagnosed and in active treatment each year. Currently, patients have a variety of treatment options ranging from physical therapy to open back surgery. The mild procedure is unique because it provides durable relief with low risk of complications and does not require general anaesthesia, stitches or extensive recovery time.
