Sep 21, 2015
ST. LOUIS, MO – September 21, 2015 – Veran Medical Technologies Inc., a privately-held medical device company and leader in image-guided endobronchial and percutaneous technology for diagnosis of lung cancer and therapy delivery, has completed a $30.6 million financing, led by Versant Ventures and River Cities Capital Funds. The financing was oversubscribed with participation from existing investors Prolog Ventures, Advantage Capital, Rex Health Ventures, 3G Capital, Dynamic Investments, and Vectis. The financing will support Veran’s commercial expansion in the U.S. and entry into international markets.
“Veran’s SPiN Thoracic Navigation System and SPiNPerc are transforming the physician’s ability to accurately access and diagnose hard-to-reach solitary pulmonary nodules (SPN’s) and to provide cost-effective care for the 2.7 million SPN’s found annually in the U.S.,” said Veran CEO Jason Pesterfield. “With this new financing, we are well positioned to accelerate our commercial expansion plans to address this fast growing multi-billion dollar potential market while helping our customers save more lives through the early diagnosis of lung cancer.”
The SPiN Thoracic Navigation System and SPiNPerc are being used by many of the top cancer centers in the U.S., and they enable physicians to navigate easily to suspicious nodules through either an endobronchial or percutaneous approach using a detailed, patient-specific airway map derived from a low dose CT scan. With Always-On Tip Tracked instrumentation and patient tracking of respiration, Veran enables accurate and fast diagnosis in a single procedure versus what has traditionally taken several procedures to get a lung cancer diagnosis.
“With Veran’s revolutionary technology and the recent CMS approval of lung cancer screening, the company has the potential to advance treatment for the millions of patients annually that are found to have a lung nodule. By providing the physician with best-in-class navigational tools, more patients will receive earlier definitive diagnoses that enables optimal care and the chance for improved clinical outcomes,” said Kirk Nielsen, Managing Director at Versant Ventures, who joined the company’s Board of Directors with the financing. “We have been tracking Veran and the thoracic navigation space for a number of years, and we believe the company has reached an inflection point as it relates to clinical validation and market adoption with their innovative next generation platform. We are excited to be working with this experienced team to build a very successful company,” said David Kereiakes of River Cities Capital Funds, who will also join Veran’s Board of Directors.
Versant Ventures is a leading healthcare investment firm committed to helping exceptional entrepreneurs build the next generation of great healthcare companies. The firm invests across the healthcare sector and at all stages of company development, with an emphasis on the discovery and development of novel therapeutics. With $1.9 billion under management and offices in North America and Europe, Versant has built a team with deep investment, operating, and scientific expertise that enables a hands-on approach to company building. Since the firm’s founding in 1999, more than 40 Versant companies have achieved successful acquisitions or IPOs. For more information, please visit www.versantventures.com
River Cities invests in market-validated, fast-growing healthcare and information technology companies in the less efficient, lower end of the growth equity market. A consistent, cohesive team has honed this strategy over four prior funds with compelling performance. The experienced team adds value to the marketing, operations and governance of each of its portfolio companies. With over $500 million of capital raised and a consistent track record of entrepreneurial success, River Cities has established itself as a preferred source of growth capital. The Firm, located in Cincinnati, OH and Raleigh, NC, is actively seeking new investments for its fifth fund. For more information, please visit www.rccf.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.