Providence Medical Technology Secures $25 Million In Equity Financing
Proceeds to Bolster Commercial Expansion & Clinical Development of its DTRAX® Spinal System
PLEASANTON, Calif., Sept. 20, 2018 /PRNewswire/ -- Providence Medical Technology, Inc., an innovator in tissue-sparing surgical equipment and implants for cervical spine fusion surgery, today announced the closing of $25 million in new equity financing. Revelation Partners led the round with participation from the private equity investment team at BMO Global Asset Management (EMEA), MVM Life Science Partners, Medvest Capital, and Aphelion Capital. Inclusive of this new investment, Providence has raised a total of $53 million in equity financing since its 2008 inception.
The proceeds of the financing will be used to accelerate commercial expansion and clinical development of its DTRAX® line of cervical fusion instruments designed to help patients suffering from advanced cervical spine conditions.
"DTRAX is an important innovation in cervical spine treatment that addresses a large market with significant unmet clinical need," said Zack Scott, Managing Partner of Revelation Partners. "We are pleased to back the Providence team during this pivotal stage of the Company's growth."
"We welcome Revelation Partners and BMO to our dedicated team of investors," said Jeff Smith, CEO of Providence. "We are committed to improving the lives of patients suffering from cervical spine disorders. This funding enables Providence to increase our investment in clinical evidence development and bring our unique cervical fusion technology to more patients and surgeons. I am grateful for the new and continued support from our venture partners."
Over 300,000 Americans receive cervical spine fusion annually for debilitating neck and arm pain. While many have successful results, roughly 20% of two-level anterior fusions fail.1,2 Additionally, 22% of patients are predicted to require reoperation for adjacent segment disease within ten years after surgery.3 Providence has developed a unique tissue-sparing approach to cervical fusion that is designed to address this unmet need. The company's flagship DTRAX Spinal System was recently cleared by the FDA for use in posterior cervical fusion in patients with cervical degenerative disc disease and has been approved at over 1,800 hospitals in the United States.
About DTRAX Spinal System
The DTRAX Spinal System is a set of surgical instruments indicated for performing posterior cervical fusion in patients with cervical degenerative disc disease. The system allows surgeons to perform posterior cervical fusion using a variety of surgical techniques including a tissue-sparing technique that reduces the dissection and stripping of muscles.4
About Providence
Providence Medical Technology, Inc. is a privately-held medical device company focused on innovative surgical solutions for cervical spine surgery. The company has pioneered a proprietary approach to posterior cervical fusion and has developed surgical instrumentation and implants that offer unique benefits to the $2 billion worldwide cervical spine market.
The Providence family of products includes the DTRAX® Spinal Instrumentation System, CAVUX® intervertebral implants, ALLY® bone and facet screws, and ENTRUS™ Allograft Bone. All products are sterile-packaged and single-use to maximize perioperative efficiency and ensure consistent quality and performance.
For more information, please visit www.providencemt.com.
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References
1. Davis RJ, et al. Cervical total disc replacement with the Mobi-C cervical artificial disc compared with anterior discectomy and fusion for treatment of 2-level symptomatic degenerative disc disease: a prospective, randomized, controlled multicenter clinical trial: clinical article. J Neurosurg Spine. 2013 Nov;19(5):532-45. doi: 10.3171/2013.6.SPINE12527. Epub 2013 Sep 6. PubMed PMID: 24010901.
2. Fraser JF, et al. Anterior approaches to fusion of the cervical spine: a meta analysis of fusion rates. J Neurosurg Spine. 2007 Apr;6(4):298-303. PubMed PMID: 17436916.
3. Lee JC, et al. Adjacent segment pathology requiring reoperation after anterior cervical arthrodesis: the influence of smoking, sex, and number of operated levels. Spine (Phila Pa 1976). 2015 May 15;40(10):E571-7. doi: 10.1097/BRS.0000000000000846. PubMed PMID: 25705959.
4. McCormack BM, et al. Novel instrumentation and technique for tissue sparing posterior cervical fusion. J Clin Neurosci. 2016 Dec;34:299-302. doi: 10.1016/j.jocn.2016.08.008. Epub 2016 Aug 31. PubMed PMID: 27590864.
SOURCE Providence Medical Technology, Inc.
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