Emphasys Medical Closes Oversubscribed $27.5 Million Round of Private Financing
Jun 23, 2004 - Funds Will Be Used to Run Pivotal Trial and Prepare for U.S. Commercialization
REDWOOD CITY, Calif. -- /PRNewswire/ -- Emphasys Medical Inc., a medical device company focused on improving the lives of patients with emphysema, announced today the closing of a $27.5 million private placement of its Series D preferred stock. New investors included OrbiMed Advisors LLC, as the rounds lead, and Morgan Stanley Venture Partners. All of the existing investors, which include Advanced Technology Ventures, ABS Ventures, Morgenthaler Ventures and St. Paul Ventures, also participated in the financing.
Funds from the Series D round will be used to complete the Endobronchial Valve for Emphysema Palliation Trial (VENT), a pivotal trial to assess the safety and efficacy of the Emphasys Endobronchial Valve (EBV), and to begin preparation for U.S. commercialization. The multi-center, randomized VENT study will enroll 270 participants across the U.S. and Europe with two arms: a control arm receiving standard optimal medical management, and a treatment arm receiving the EBV. The study's primary efficacy endpoints are improvement in lung function and exercise tolerance. Improvement in quality of life and cost effectiveness will also be assessed.
"I am pleased to add these two, top-tier firms to our list of investors, and believe that the extremely high caliber of all of our investors continues to validate the strength of our team and the progress that we have made," said John McCutcheon, president and chief executive officer of Emphasys. "We anticipate that the funding from this round will enable Emphasys to complete the VENT study, move forward with U.S. commercialization plans for the EBV and further develop our pipeline of products." Concurrent with the investment, Emphasys announced the appointment of Jonathan Silverstein, General Partner of OrbiMed Advisors, to its board of directors. "OrbiMed's strategy is to identify major, emerging medical therapies and invest in companies that are recognized leaders in these fields. With Emphasys, we believe we have found a company that has developed a very novel product with the potential to improve the lives of patients with emphysema," said Silverstein. "We continue to be impressed by the progress that Emphasys has made in advancing this important technology, as is evidenced by the clinical results from the company's international efficacy trials."
About Emphasys Medical
Emphasys Medical is focused on improving the lives of patients with emphysema and other pulmonary diseases through the development of minimally-invasive devices that help patients breathe easier. Headquartered in Redwood City, CA, privately held Emphasys works with leading pulmonologists and surgeons around the world, and has an experienced management team in place to manage the company through to commercialization.
For further information, please contact: Carin Canale, ccanale@irpr.com or Michael Moore, mmoore@irpr.com, both of Atkins + Associates, +1-858-860-0266