Medical Device Daily: Financings Roundup: PneumRX Raises $33 Million in New Capital Funding Drive
January 05, 2011 - Medical Device Daily
PneumRx (Mountain View, California), reported that it has raised $33 million in working capital commitments. The oversubscribed round was led by Forbion Capital Partners (Naarden, the Netherlands) and co-led by Endeavour Vision (Geneva, Switzerland), and also included a prominent strategic corporate partner. The syndicate was joined by existing investors Adams Street Partners, Telegraph Hill Partners, Alta Partners, and Spray Venture Partners, among others. Silicon Valley Bank and Leader Ventures also contributed to the capital raise in PneumRx.
PneumRx recently established a subsidiary in Germany, PneumRx GmbH, and has begun selling its RePneu Lung Volume Reduction Coil (LVRC) system in Europe. It plans to use the funds to expand European commercialization and to conduct an FDA-approved pivotal clinical trial to support a PMA application. PneumRx expects to begin its pivotal clinical trial in early 2011 and intends to submit its pivotal trial results to support a PMA application to be able to sell the RePneu LVRC System in the U.S.
The RePneu LVRC System is a minimally invasive device intended to improve lung function in emphysema patients by bronchoscopically implanting nitinol coils into the lungs to compress damaged tissue (lung volume reduction) and restore elastic recoil to the lung. This treatment offers a minimally invasive alternative to lung volume reduction surgery, and works independently of collateral ventilation. The LVRC System is CE marked and is currently available in select markets in Europe, with plans for broader expansion.
"We believe that this partnership will be extremely beneficial as PneumRx prepares for its future pivotal trial, commercialization and reimbursement efforts in the U.S. We also appreciate the addition of two prominent European venture firms to our board. We look forward to working more closely with Forbion and Endeavour Vision as we expand our commercial efforts in Europe," said Erin McGurk, founder, president/CEO of PneumRx. "2010 was an exciting year for PneumRx, receiving our CE mark and achieving our first European sales and we look forward to expanding into the US in 2011, with our plans for our pivotal clinical trial. We are pleased to be able to bring our RePneu Lung Volume Reduction Coil treatment to a greater number of emphysema patients suffering from this debilitating disease," McGurk added.