Paradigm Spine Closes $21.5 Million Financing and Announces Promotion of Matt Stuttle to Position of Vice President, US Sales
NEW YORK, July 27 /PRNewswire/ -- Paradigm Spine, LLC, a developer of innovative non-fusion spinal implant solutions, announced that it has completed a $21.5 million financing, consisting of a $15mm debt facility and $6.5mm equity. Fifth Third Bank was the sole lender in the $15mm venture debt funding. The $6.5 mm of equity was led by Praefinium Group, a global asset management group specializing in high-growth opportunities, and Trevi Health Ventures, a venture capital firm specializing in healthcare investments.
The proceeds from this financing will be used to strengthen the US sales infrastructure, fund the Company's ongoing US clinical trial of the coflex((R)) device, and drive further international expansion of the company's product portfolio. The Company believes this financing will carry it through to profitability in 2010.
Marc R. Viscogliosi, Chairman and CEO of Paradigm Spine, LLC, said "Paradigm's ability to raise capital despite this current economic situation reinforces the strength and quality of our organization, and the confidence our investors have in the success of the company. Paradigm has demonstrated a strong track record over the past 4 years, with sales growing at a CAGR of over 60% from 2005 - 2008. Worldwide revenues grew 63% 2Q09 vs. 2Q08 and growth was more than 15% when comparing sequentially 2Q09 vs. 1Q09. We are particularly pleased with this performance despite economic headwinds and slowing surgical volumes and expect this growth to continue with the expansion of the US Sales team. "
Jeff Thieman, vice president of National Healthcare Finance at Fifth Third Bank added: "We are pleased to do business with a market leader in the advancement of innovative non-fusion spinal implant products. The new capital will support Paradigm as the Company positions itself for future growth. At Fifth Third Bank, we are committed to responsible lending for our commercial clients."
HealthCor Partners has been an investor since 2007 and is a significant shareholder of Paradigm Spine. Jeff Lightcap, Senior Managing Director at HealthCor and a member of the Paradigm Board said "HealthCor has watched the compelling value proposition of Paradigm Spine increase over the past few years, from a small, R&D focused product development company to an established operational business with a full product portfolio. We believe this financing will take the Company even further to the next level, enabling achievement of significant sales, clinical and regulatory milestones in the next few years."
Paradigm Spine is also pleased to announce the promotion of Matt Stuttle to the position of Vice President, US Sales. Matt joined Paradigm Spine in June of 2008 as an Area Sales Director for the Western US with over 12 years of Pharmaceutical and Medical Device experience. He has held various positions in Sales, Sales Management, and Director level roles with Forest Pharmaceuticals, Kyphon, and most recently Medtronic Spine and Biologics.
"Promoting Matt to Vice President, US Sales, creates a results oriented culture and strong foundation for our US Sales team," commented Chris Hughes, President, US. "He will continue to add extensive industry knowledge, surgeon and sales force relationships to the US infrastructure, and he will be instrumental in strategically executing our US sales plan."
About Paradigm Spine, LLC
Paradigm Spine is a company focused on the design, development and marketing of innovative non-fusion solutions for the treatment of spinal conditions and diseases. The company's mission is to provide only "Best in Class" products and services to Spine Surgeons and to be above all, "Surgeon Centric, Indication Specific and Data Driven".
The company is concentrating on building a multi-product non-fusion portfolio. The company's signature product is the coflex((R)) interlaminar/interspinous functionally dynamic stabilization device, currently being used in over 40 countries.
The company is currently conducting a multi-center IDE clinical trial of the coflex((R)) implant in the United States. The FDA cleared the company's DSS(TM) system in 2008, which is the company's first product to be marketed in the United States. Paradigm Spine's wholly owned subsidiary, Fourth Dimension Spine is developing a portfolio of non-fusion scoliosis technologies.
For more information please visit: www.paradigmspine.com
SOURCE Paradigm Spine, LLC