Benvenue Medical has its eye on the minimally invasive spine device market, and the company recently completed a round of financing for future growth in that space.
Here are five things to know about Benvenue Medical's financing:
1. The company completed a $64 million round of financing and intends to use the proceeds to build its United States commercial presence, scale up manufacturing, increase administrative functions to support overall corporate growth and provide working capital to fund growth in operating activities.
2. The financing was a combination of $40 million in Series E equity supplemented with $24 million in debt. New investor InterWest Partners led the Series E equity financing with existing major investors. Silicon Valley Bank was the sole debt provider. The company also welcomed InterWest Partners' Gil Kliman, MD, to its board of directors.
"Benvenue Medical is, without a doubt, one of the most exciting companies in the spine category," said Dr. Kliman in a news release. "We're happy to be part of the significant positive momentum that clearly shows how well-positioned the company is for considerable commercial success in the global spine market."
3. Benvenue Medical CEO Robert Weigle attributed the large investment to successfully launching the company's Kiva VCF treatment system in the United States. The company also received a CE mark for the Luna interbody system and is preparing for an upcoming FDA submission. "We're all very excited about the enthusiastic response we've received from the spine community," said Mr. Weigle in a news release.
The Kiva system is a new implant-based approach to vertebral augmentation. Studies of more than 500 patients show it meets or exceeds balloon kyphoplasty results. The company's Blazer-C vertebral augmentation system is designed to create channels within the vertebral body for bone cement delivery. The Luna system is not currently available in the United States.
4. The global spine device market is valued at around $9 billion today, and Benvenue Medical is poised to take advantage of the market. In February, physicians at George Washington University Hospital became the first to treat patients with painful spinal fractures with the Kiva VCF treatment system. The system received FDA clearance in January.
A report from MarketsandMarkets estimates the global spine device market will reach $14.8 billion by 2017, showing significant growth potential over the next three years. The report also states the market is showing "growing preference" toward new technologies, including VCFs and artificial discs.
5. A second independent study comparing Kiva to balloon kyphoplasty was released in October 2013. Pain improvement was significantly better among the Kiva patients after six months. Among the balloon kyphoplasty patients, 54 percent experienced new fractures after treatment; only 12 percent of Kiva patients suffered new fractures. Additionally, only half the amount of cement was used with Kiva than with balloon kyphoplasty.
There are around 700,000 osteoporosis-related vertebral compression fractures annually, according to the National Osteoporosis Foundation. Currently, only 200,000 are treated with kyphoplasty each year.
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