Vascular Dynamics (Israel) Secures $16.85 Million Series B Financing
Vascular Dynamics Inc. (VDI) a medical device company providing minimally invasive solutions for the treatment of refractive or resistant hypertension, today announced the successful completion of the first tranche of its $16.85 million Series B financing in the amount of $8.425 million, with the remaining $8.425 million to be invested following the achievement of certain clinical milestones. The financing was led by HBM Healthcare Investments, joined by existing investors Rainbow Medical, the MedFocus Funds, and an undisclosed existing investor with over a billion dollars of assets under management. In conjunction with the financing, Thomas Thaler, investment advisor at HBM Healthcare Investments, will join VDI’s Board of Directors. The financing enables VDI to advance its clinical trial program for the treatment of resistant hypertension both in the United States and in Europe.
“Data from the study continues to be promising, further supporting the potential long term benefits of the MobiusHD™ solution. The majority of the patients enrolled in the CALM-FIM study have demonstrated a favorable response. The positive response, and level of interest we have received from investors is a great reflection on our seasoned team, the market opportunity, and the unmet need for a viable treatment of resistant hypertension,” said Robert Stern, President and Chief Executive Officer of VDI. “This financing will allow the company to complete its European and U.S. safety studies and prepare for our pivotal U.S. clinical study. Resistant hypertension affects people all over the world, so we are thrilled to expand our top-tier syndicate to include HBM Healthcare Investments. We have made great progress since our Series A financing, including finalizing development of the MobiusHD™, the initiation of our FDA-cleared clinical safety trial, our European clinical safety trial, and issuance of broad intellectual property.”
The funding will advance the company’s MobiusHD™ program for use as a treatment for resistant hypertension. The MobiusHD™ device is a catheter-delivered nitinol implant. The device is delivered endovascularly to the carotid sinus, an area located near the junction of the common carotid, external carotid, and internal carotid arteries. The MobiusHD™ is designed to amplify the signaling received by the arterial baroreceptors surrounding the carotid sinus, causing peripheral blood vessels to dilate, thereby reducing blood pressure.
About Resistant Hypertension
Resistant hypertension is defined as high blood pressure which does not respond to standard medical treatments (typically defined as three or more anti-hypertensive drugs). Between 12% and 15% of all persons with hypertension have resistant hypertension. Many anti-hypertension drugs have significant side effects. Patients that are required to take three or more drugs, often at their maximally tolerated dosages, may have a significantly impacted quality of life. VDI has developed a nitinol implant delivered by catheter to the carotid sinus that is designed to amplify the signals received by the surrounding arterial baroreceptors. Baroreceptors are a type of stretch receptor that detect the pressure and pulsatility in the carotid sinus, sending messages to the central nervous system to increase or decrease total peripheral resistance and cardiac output, to manage blood pressure.
About HBM Healthcare Investments Ltd
HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of some 25 promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors, and related areas. Many of these companies have their lead products at an advanced stage of development or already available on the market. The portfolio companies are closely tracked and actively guided in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (SIX: HBMN)
About Vascular Dynamics Inc.
VDI, based in Mountain View, California, was one of the nine companies chosen in 2012 by the FDA to participate in the Early Feasibility Study IDE Pilot Program. VDI is conducting clinical trials in the U.S. and Europe to evaluate the safety and performance of the MobiusHD™ device. The studies are open-label, controlled, multi-center, first-in-human clinical trials. The studies are being conducted at ten centers in the United States and seven centers in the EU. The CALM-FIM_US Study represents one of the first FDA approvals of an Investigational Device Exemption application (IDE) following the FDA’s issuance of draft guidance on IDEs for early feasibility studies. The intent of FDA’s guidance is to foster early-stage development of medical devices within the United States to address clinical needs and improve patient care, particularly when alternative treatments or assessments are unavailable. Vascular Dynamics, Inc. (VDI) is a privately-held company founded in 2008 by Rainbow Medical Ltd. (Rainbow). Rainbow is a healthcare accelerator developing the technologies invented by Israeli inventor, Yossi Gross. In November 2011, VDI’s development and commercialization efforts were moved to Mountain View, CA.
VDI has raised a total of $23 million in its Series A and Series B financing rounds.
