Spirox, Inc. Announces Closing of $45MM Series C Financing
March 15, 2016 07:00 AM Eastern Daylight Time
MENLO PARK, Calif.--(BUSINESS WIRE)--Spirox Inc., a privately held medical device company, announced today the closing of a $45 million Series C round of financing led by KKR, a leading global investment firm. In leading the round, KKR joins a strong syndicate of existing investors in the company. Also participating in the financing is new investor HealthQuest Capital along with major existing shareholders Aisling Capital, Aperture Venture Partners and Venrock. Spirox, which is developing a novel, minimally invasive system to be used by Ear, Nose and Throat (ENT) physicians and plastic surgeons to treat patients with nasal obstruction, looks forward to partnering with KKR to help scale the business and better serve the greater ENT community.
"Spirox will help ENTs improve results and relieve suffering for their nasal obstruction patients by addressing nasal valve collapse—a primary but often untreated contributor to symptoms."
"In addition to being a long-term capital partner, KKR's experience scaling businesses provides us the opportunity to build for the future and help Spirox achieve the next level of growth," said CEO Duke Rohlen. "We have a shared vision that will enable Spirox to continue to create cutting-edge innovations in order to provide breathing relief for millions of patients who need it."
Spirox's technology is intended to treat a significant patient population. Each year, more than three million Americans see a physician for symptoms resulting from nasal obstruction and nearly one million procedures are performed to alleviate these symptoms. Standard treatment options include surgery to treat a deviated septum, surgery to reduce the size of the turbinates, and/or surgery to prevent nasal valve collapse. Although treating the nasal valve creates the greatest improvement in airflow for patients suffering from nasal obstruction, the morbidity associated with the current surgical options has resulted in limited use. Spirox aims to remove this barrier with its minimally invasive approach.
"Nasal obstruction is one of the most common complaints among patients who see an ENT physician, and the condition takes an immense toll on patient quality-of-life," said Brent Senior, Chief of Rhinology, Allergy, and Endoscopic Skull Base Surgery at the University of North Carolina. "Spirox will help ENTs improve results and relieve suffering for their nasal obstruction patients by addressing nasal valve collapse—a primary but often untreated contributor to symptoms."
As part of the transaction, Jim Momtazee, KKR Member and Head of the Firm's health care investing team, will join the company's Board of Directors. "There is a significant need in the ENT space for the technology Duke and his talented team have created to help people breathe better without having to undergo surgery," said Mr. Momtazee. "We look forward to supporting Spirox to address this condition."
For KKR, the investment is part of the firm's health care growth equity strategy, which is focused on high-growth companies for which KKR can be a unique partner in helping reach scale. KKR is funding the investment primarily from the balance sheet of KKR & Co. L.P. (NYSE:KKR).
ABOUT SPIROX, INC.
Spirox is a Menlo Park, CA-based medical device company that is focused on developing minimally invasive technologies that improve the quality of life for patients with nasal obstruction.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com and on Twitter @KKR_Co.
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