Benvenue secures $60M in debt, equity to accelerate spinal implant sales
|Kiva VCF Treatment System--Courtesy of Benvenue Medical|
Spinal surgery player Benvenue completed another yet round of financing, saying the $60 million infusion of debt and equity will help it take on industry bigwigs like Medtronic ($MDT) and accelerate commercialization of its duo of minimally invasive offerings.
Financiers have demonstrated a great deal of patience and shown continued interest in the private Santa Clara, CA, company. It previously completed a $64 million debt and Series E equity round in 2014, a $25 million Series D in 2012 and $35.5 million Series C in 2011. The latest round consists of $23 million in equity and $37 million in debt.
Last year, Benvenue boasted of clinical trial results showing that its FDA-cleared Kiva VCF System to treat vertebral compression fractures (VCFs) performs as well as or better than Medtronic's KyphX System. It also signed a purchasing agreement with Novation, enabling it to offer the Kiva to the more than 100,000 members of the group purchasing organization at a negotiated price.
Cleared in January 2014, the Kiva percutaneously delivers a polymer implant into the vertebrae using a delivery device and guidewire inserted through a small incision.
The proceeds will also help commercialization of the Luna 3D Interbody Fusion System to treat degenerative disc disease. Cleared in November 2014, it is "designed to expand in three dimensions within the disc space, allowing surgeons to restore height via a posterior approach while providing the stability of a larger construct more often associated with an anterior approach," according a release.
Benvenue also sells the Blazer-C vertebral augmentation system in the U.S.
The equity was provided by DeNovo Ventures, Domain Associates, Esquilime Partners, InterWest Partners, Technology Partners, CRG and Versant Ventures. All but Esquilime Partners and CRG were listed as participants in the Series E round.
CRG is also the sole provider of the $37 million in debt. Silicon Valley Bank provided $24 million in debt at the time of the Series E financing.
Versant Ventures co-founder and managing director Donald Milder is joining Benvenue's board of directors.
"I am impressed by the significant improvements the company's expandable products, Luna and Kiva, offer over the traditional treatments for degenerative disc disease and vertebral compression fractures," said Milder in a statement. "We are pleased to participate in this new infusion of capital to help carry the company to the next level of growth and commercial success."
- read the release
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