Vertos Medical Raises $23 Million in Series E Financing Proceeds to Fund U.S. Commercial Expansion and European Launch
ALISO VIEJO, Calif., June 19, 2013 /PRNewswire-USNewswire/ -- Vertos Medical Inc., which has pioneered the mild® procedure -- a safe, outpatient procedure that can help patients diagnosed with lumbar spinal stenosis (LSS) stand longer and walk farther with less pain1 – announced today that it has closed nearly $23 million in financing. The proceeds will be used to fund U.S. commercial expansion and the launch of mild in European markets.
The financing was led by Pitango Venture Capital and joined by existing investors including ONSET Ventures, CHL Medical Partners, Foundation Medical Partners, Mercury Fund and Aweida Venture Partners.
"We are pleased to partner with Pitango, an experienced investor with global presence, and we are fortunate to have the ongoing commitment and confidence of our existing investors," said James Corbett, Vertos' president and chief executive officer.
The recent financing will support continued growth in the adoption of mild, a minimally invasive procedure which has a reported positive-response rate of 81 percent.2 Performed through an incision the size of a baby aspirin, mild has been proven safe, effective and durable in 11 clinical studies and more than 16 published peer-reviewed journal articles. Since the proprietary device kit received 510(k) clearance from the Food and Drug Administration in 2008, more than 15,000 people have been treated with mild in the U.S.
"We have an extraordinary opportunity to address a frequent and often debilitating condition with a low-cost, efficacious outpatient procedure. We intend to build on current momentum and continue our efforts to provide mild as a new treatment option for LSS patients and establish it as a standard of care," Corbett said.
Ittai Harel, General Partner at Pitango Venture Capital, who has joined the company's board, said: "Vertos Medical presents a compelling investment opportunity. We are enthusiastic about the novel mild procedure and are especially impressed by the team's progress and achievements to date."
LSS is primarily a degenerative, age-related narrowing of the lower spinal canal that causes pressure on the nerves, leading to pain and reduced mobility. It is a common condition, with more than 1.2 million Americans diagnosed and in active treatment each year.3 Onset generally occurs after age 50 and nearly 8% of the U.S. is affected by this condition.4 These statistics present a large and growing market for innovative, low-cost procedures like mild. Currently, patients have a variety of treatment options ranging from physical therapy to open back surgery. The mild procedure is unique because it provides durable relief with low risk of complications and does not require general anesthesia, stitches or extensive recovery time.5
mild is a safe procedure that can help patients diagnosed with LSS stand longer and walk farther with less pain. It is a short, outpatient procedure performed through an incision the size of a baby aspirin that requires no general anesthesia, no implants and no stitches. Its efficacy and safety have been demonstrated in 11 clinical trials and more than 16 published peer-reviewed clinical journal articles. For more information, visit www.mildprocedure.com.
About Vertos Medical Inc.
Vertos Medical is a leader in the treatment of patients suffering with lumbar spinal stenosis (LSS), a degenerative, age-related narrowing of the lower spinal canal. Its proprietary technologies include mild, which offers an outpatient, minimally invasive, fluoroscopically guided therapeutic treatment of LSS. For more information, visit www.Vertosmed.com.
This press release is neither an offer to buy nor an offer to sell the Company's securities. The issuance of the Preferred Stock by Vertos Medical Inc. was in an exempt private offering and the securities were not registered with the Securities Exchange Commission. The offering has been completed.
1 Mekhail, Nagy, et al. (2012), Functional and Patient-Reported Outcomes in Symptomatic Lumbar Spinal Stenosis Following Percutaneous Decompression. Pain Practice, 12(6): 417–425. doi: 10.1111/j.1533-2500.2012.00565.x.
2 Levy, R., et al. (2012). Systematic safety review and meta-analysis of procedural experience using percutaneous access to treat symptomatic lumbar spinal stenosis. Pain Medicine. 13(12), 1554-1561. doi: 10.1111/j.1526-4637.2012.01504.
3 Longitudinal Medicare Database, Quorum Consulting.
4 Deer, Timothy. (2012), Minimally Invasive Lumbar Decompression for the Treatment of Spinal Stenosis of the Lumbar Spine. Pain Management, 2(5): 457-465, ISSN 1758-1869.
5 No dural tears, nerve root damage or blood loss requiring transfusion reported in any clinical trials.
SOURCE Vertos Medical Inc.