Veran Medical Completes $12 Million in New Financing

Funds to Support Commercial Expansion in the U.S. and International Launch of the Veran Thoracic Navigation System™

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Oct 20, 2014, 09:00 ET

ST. LOUIS, Mo., Oct. 20, 2014 /PRNewswire/ -- Veran Medical Technologies, a market leader in thoracic navigation for early detection of lung cancer, announced today the completion of a $12M financing to support the Company's continued commercial expansion in the U.S. and international launch of the Veran Thoracic Navigation System™. A strong syndicate of private institutional investors, including Prolog Ventures, led the financing.

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"We are very excited to partner with strong financial investors who recognize the potential of our Thoracic Navigation System™ to impact lung cancer survival rates," said Jason Pesterfield, President and CEO of Veran Medical Technologies. "The development of a Thoracic Navigation System™ that combines electromagnetic navigation bronchoscopy (ENB) and the Veran SPiNPerc™ navigated percutaneous lung biopsy procedure is groundbreaking. The Thoracic Navigation System enables physicians to biopsy lung nodules whether they are inside or outside the airways with a single system in one procedure."

"Lung cancer is a global health care issue and Veran is a key partner in the fight through early detection. Veran's strong commercial progress in 2014 is a testament to the management team and the company's ability to transform the way lung cancer is managed," noted Curt Hartman, Chairman of the Veran Medical Board of Directors.

Lung cancer causes more deaths in men and women than colon, breast and prostate cancer combined1. If lung cancer is diagnosed at Stage III or IV, the five-year survival rate is only 15%2. With early detection, there can be an 88% survival rate at ten years and a 92% survival rate with the immediate removal of the lesion3. Prior to the development of Veran's Thoracic Navigation System, only 16% of lung cancer patients have been diagnosed at an early stage3.

About Veran Medical Technologies: Veran Medical Technologies is a privately held medical device company, headquartered in St. Louis, MO. We have developed and commercialized a unique Thoracic Navigation System™, which includes a hybrid lung cancer diagnostic procedure called SPiNPerc™. SPiNPerc combines our two main platforms; navigational bronchoscopy and percutaneous navigation, giving physicians more tools to diagnose early stage cancer.

References:
1) American College of Chest Physicians www.chestnet.org/lungcancer.
2) The International Early Lung Cancer Action Program Investigators. Survival of patients with stage I lung cancer detected on CT screening. The New England Journal of Medicine 2006; 355:1763-1771.
3) Ries L, Eisner M, Kosary C, et al. SEER Cancer Statistics Review, 1975-2003, National Cancer Institute, Bethesda MD, http://seer.cancer.gov/csr/1975_2003/.
4) Lee, K. Adam, MD, Abhijit A. Raval, MD, and Leah Amira, MS. Cost Effectiveness of Endobronchial Percutaneous Biopsy Compared to Transthoracic Biopsy for Diagnosis of Peripheral Lung Lesions (2014)