Dec 19, 2018
December 19th, 2018 – St. Louis, MO
Veran Medical Technologies, Inc., a privately held medical device company and leader in interventional pulmonology technologies, announced today that it has secured a new credit facility from Madryn Asset Management. The financing provides Veran with up to $35 million in aggregate proceeds, which provides increased financial and structural flexibility to support Veran’s continued investment into its strategic growth initiatives focused on improving the diagnosis and treatment of lung cancer.
“We are excited to partner with Madryn and its team of experienced healthcare investment professionals to support our continued advancement of interventional technologies for the lung cancer market,” said Veran Medical CEO Jason Pesterfield. “This financing provides the resources and flexibility that will allow us to continue our commercial expansion and technological innovation in order to help physicians diagnose and treat lung cancer earlier and to ultimately save lives.”
Madryn’s financing follows a strategic investment from BTG which joined Veran Medical’s existing investors including Versant Ventures and River Cities Capital Funds.
“We believe that Veran’s technologies provide a precision navigational platform that enhances and expands physicians’ access to difficult-to-reach peripheral lung nodules,” said Peter Faroni, Co-Founder and Partner of Madryn. “There is significant unmet need in the diagnosis and treatment of lung cancer and we believe that expanding access to innovative interventional technologies such as Veran’s will result in faster diagnoses, improved patient outcomes, and lower costs to the healthcare system. We are thrilled to be joining Veran’s existing partners at this exciting time and look forward to supporting the company’s creation of value over the long term.”
Veran’s next-generation SPiN Thoracic Navigation System™ offers an industry-leading, precision, thoracic guidance platform that allows pulmonologists and other lung specialists to seamlessly transition between a navigated, endobronchial approach and a navigated, transthoracic approach utilizing SPiN Perc™, to help physicians diagnose lung cancer earlier. A published clinical study utilizing a multi-modality approach, including Veran’s SPiN System™ and SPiN Perc™, have demonstrated a 92% diagnostic yield.
Veran’s SPiN Thoracic Navigation System™ is the most versatile system on the market and is also utilized by thoracic surgeons for localization and marking of lung nodules in the operating room immediately prior to resection. In addition, Veran’s SPiN IR™ software application enables interventional radiologists to utilize the navigation platform for lung, liver, kidney, and other thoracic anatomy.
Lung cancer remains the number one cancer killer worldwide. In the U.S. alone, 94 million current or former smokers remain at elevated risk for lung cancer and more than 8 million people currently meet the clinical criteria for lung cancer screening. When suspicious lesions are discovered, physicians and patients need diagnostic answers to inform treatment decisions. Mounting clinical data suggests that a large percentage of the hundreds of thousands of bronchoscopies performed every year on suspected lung cancer patients are non-diagnostic—delaying potential lifesaving therapy and often resulting in invasive, expensive, and potentially unnecessary surgical procedures.
About Madryn Asset Management, LP:
Madryn Asset Management, LP is a leading alternative asset management firm that invests in innovative healthcare companies specializing in unique and transformative products, technologies, and services. The firm draws on its extensive and diverse experience spanning the investment management and healthcare industries, and employs an independent research process based on original insights to target attractive economic opportunities that deliver strong risk-adjusted and absolute returns for its limited partners while creating long-term value in support of its portfolio companies. For additional information, please visit www.madrynlp.com.
Veran is a privately held medical device company headquartered in St. Louis, MO. The company’s mission is to empower physicians to diagnose cancer earlier and to enable precision therapy to save lives. In the United States, lung cancer kills more people each year than breast, prostate, pancreatic and colon cancers combined.
Veran has developed and commercialized an FDA cleared, next generation electromagnetic thoracic navigation platform called the SPiN Thoracic Navigation System®. Veran’s breakthrough technology has been adopted by leading cancer centers throughout the United States. Veran provides physicians with a full line of bronchoscopic brushes, needles, forceps and steerable catheters with tiny electromagnetic sensors embedded in the tips for precise navigation. The combination of these proprietary Always-On Tip Tracked® instruments and Veran’s exclusive patient respiratory gating technology enables physicians to accurately access lung nodules by accounting for nodule movement during patient breathing, a common challenge for lung specialists.
Another challenge lung specialists face is that approximately 40% of lung nodules lie outside of an airway, making them very difficult to reach endobronchially, and traditionally requiring an additional procedure. Veran’s SPiN Thoracic Navigation System® is the first and only FDA cleared technology that enables Pulmonologists or Thoracic Surgeons to safely and accurately access lung nodules outside of an airway using SPiN Perc®, a navigated transthoracic needle. With SPiN Perc®, Veran combines endobronchial navigation with percutaneous navigation, allowing physicians to access all lung nodules in a single procedure, regardless of nodule size or location. This eliminates the cost and risk of unnecessary procedures and empowers physicians to provide a same day diagnosis for their patients. The early diagnosis and treatment of lung cancer has been proven to save lives.