Arthrosurface Raises $4 Million of Preferred Equity Financing

Feb 28, 2008, 00:00 ET from Arthrosurface, Inc.

    FRANKLIN, Ma., Feb. 28 /PRNewswire-FirstCall/ -- Arthrosurface, Inc.
 (, the developer of less-invasive joint
 resurfacing systems, has announced that it has raised approximately $4
 million in its latest Preferred Stock Series F equity financing. Funded by
 Boston Millennia Partners and private investors, to date, the company has
 raised approximately $31 million of equity capital. "The Series F funding
 is earmarked to support our new product launches, expansion of the
 company's direct field sales team and to provide ongoing working capital,"
 said Steve Ek, COO. "We now have greater resources to provide for the
 people and working capital to support the continued growth of the
     Arthrosurface is entering its fourth year of commercial launch with
 approximately 7,000 devices implanted by more than 2,000 surgeon users in
 the various joint applications of the HemiCAP(R) system. Last year, US
 implant sales were up 55% with strong growth across all key product lines.
 In particular, sales of the company's first US knee device, the
 Patello-Femoral HemiCAP(R), grew 237% year on year. "We have found that
 within the first year of clinical launch, implanting surgeons closely
 monitor patient progress and, once they have confirmed positive results,
 sales begin to rise significantly. An excellent example of this was our
 great toe product. Cases went from a few hundred in the first year to
 thousands within two years. We expect similar adoption with the release of
 our new products," commented company president Steve Tallarida.
     The company's HemiCAP(R) systems consist of a range of contoured
 articular prosthetics and instrumentation intended for the repair of
 significant lesions and cartilage damage in the major joints. Arthrosurface
 continues to grow its line of shoulder, great toe, patello-femoral and hip
 products in the US. These same products are sold in Europe in addition to
 its knee femoral condyle and talar dome devices.
     The HemiCAP(R) system provides a less invasive alternative servicing
 the joint reconstruction market with its resurfacing systems. "We believe
 there is a growing body of patients that have damaged cartilage seeking
 medical options that will enable them to maintain their active lifestyles.
 These patients will consider surgical treatment provided that recovery is
 relatively easy and their future medical options remain open. We believe
 that this is the new Millennium Patient(TM)," said Lester Fehr, VP Sales &
 Marketing. "Today's patient is a more demanding and educated consumer. For
 Arthrosurface, we believe that this is our patient."

SOURCE Arthrosurface, Inc.