PITTSBURGH, June 26, 2012 /PRNewswire/ -- Cohera Medical, a leading innovator and developer of absorbable surgical adhesives and sealants, announced today that it has secured over $8.4 million towards the Series D financing through private investors.
The Company will use the funds to expand adoption in Germany and additional European markets for its lead product, TissuGlu® Surgical Adhesive. The funds will also be used to support the clinical trials for TissuGlu in the United States, as well as the development and advancement of pipeline products, including FlexSil™ Surgical Sealant, an innovative surgical sealant for bowel repair with a billion dollar market potential.
"Cohera Medical has done a remarkable job of attracting world-class plastic and reconstructive surgeons in Germany who are successfully using TissuGlu," said John C. Kern, Founder and General Partner of Kern Whelan Capital, LLC, and Manager of Kern Medical III. "We are excited that Cohera is also pursuing the development of FlexSil, a unique and proprietary bowel sealant with over a billion dollar market potential. Both first-of-its-kind technologies represent very attractive investment opportunities."
"The convertible note portion of the Series D round is a reflection of our investor's confidence that we continue to meet our key milestones, including the start of our clinical trial for TissuGlu in the U.S.," said Patrick Daly, President and CEO of Cohera Medical. "I believe that Cohera Medical is at the forefront of bringing some of the most exciting surgical products to market that have the potential to change the way patients recover from so many types of large flap procedures — from abdominoplasties and mastectomies to lymph node dissection in cancer patients, bowel procedures and reconstruction of sternal defect in open-heart surgery."
Cohera Medical recently received CE Marking approval for TissuGlu and began selling product to hospitals and surgeons in Germany in September 2011. The Company plans to expand the commercial availability of TissuGlu to additional European markets in 2012. TissuGlu has been used successfully in over 450 surgical procedures in Germany by leading plastic and reconstructive surgeons. The product is currently undergoing clinical trials in the U.S. and is covered by 61 issued and pending patents worldwide.
Currently, most patients who undergo abdominoplasty procedures and other flap procedures require the insertion of drains to remove fluids that accumulate under the skin at the surgical site. In some cases, drainage is inadequate and the excess fluid accumulation (seroma) requires additional procedures for removal. TissuGlu adheres the tissue flap created during the procedure to the underlying tissue, helping to reduce the fluid that can accumulate in the space and ultimately reducing the time to drain removal. The use of TissuGlu may shorten the length of time that drains need to be in place, leading to a more comfortable recovery and a quicker return to normal activity for patients.
According to the American Society of Plastic Surgeons, the global market for cosmetic surgery and treatments now exceeds $30 billion, with a sustainable compound annual growth rate in the range of 25%. In Europe, the market for cosmetic surgery is about $2.2 billion with a compound annual growth rate of 19% (Frost & Sullivan), and total sales of wound closure devices are expected to reach approximately $740 million in 2012 (Medtech Insight). In the US, the market for medical adhesives and sealants is forecast to reach $2.3 billion by the year 2017 (Global Industry Analysts).
About Cohera Medical
Cohera Medical, Inc.® is a leading innovator and developer of absorbable surgical adhesives and sealants. The Company's first product, TissuGlu® Surgical Adhesive, is an internal surgical adhesive for large flap surgeries, such as abdominoplasty (tummy tuck), that help eliminate or reduce fluid accumulation and the need for post surgical drains. TissuGlu's chemical composition is resorbable, non-toxic, forms a strong bond between tissue layers and allows for natural healing, which ultimately may enable faster recovery. TissuGlu has received CE Marking approval to be sold in the European Union (EU). Cohera Medical is also developing a unique and proprietary bowel sealant, and a strong adhesive for mesh fixation. Outside of the EU, TissuGlu and the other Cohera products are currently indicated for investigational use only and have not yet been approved for marketing by the Food and Drug Administration (FDA) in the U.S. or in any other market. For more information, visit www.coheramed.com.
Certain statements made throughout this press release that are not historical facts contain forward-looking statements regarding the Company's future plans, objectives and expected performance. Any such forward-looking statements are based on assumptions that the Company believes are reasonable, but are subject to a wide range of risks and uncertainties and, therefore, there can be no assurance that actual results may not differ materially from those expressed or implied by such forward-looking statements.
SOURCE Cohera Medical, Inc.