Dec 21, 2016
St. Louis, MO, December 21, 2016 – Veran Medical Technologies today announced the closing of a $31 million debt and equity financing. The debt financing is provided by Oxford Finance LLC (“Oxford”), a specialty finance firm that provides senior debt to life sciences and healthcare services companies, and the equity financing was completed by existing investors Versant Ventures and River Cities Capital Funds. Veran will use proceeds of the financing to accelerate commercialization and innovation of its SPiN Thoracic Navigation System™ technology platform.
Veran’s SPiN Thoracic Navigation System™ is a revolutionary technology that helps speed time to diagnosis and provides pinpoint thoracic guidance for life saving therapies for lung cancer patients. The SPiN System™ provides best in class cancer treatment providers with a scalable platform solution that can also be utilized for managing other leading cancers like liver and kidney cancers.
“We’re pleased to secure yet another investment commitment from a new investor who recognizes the impact that Veran can have in our mission to significantly improve long-term survival rates for cancer patients,” said Veran Medical CEO Jason Pesterfield. “The funding will provide us with the working capital necessary to continue our focus on accelerating growth and innovation in the global lung cancer market. Our platform provides lung cancer specialists with the best solutions available to better serve patients, save lives and reduce unnecessary procedures, complications and costs.”
Veran’s SPiN System™ offers exclusive features including respiratory gating technology that tracks moving lung lesions, Always-On Tip Tracked® instruments equipped with electromagnetic sensors to ensure pinpoint guidance throughout the procedure—even during sampling, and SPiN Perc™—which enables physicians to seamlessly transition from a navigated bronchoscopy to navigated transthoracic needle aspiration in a single procedure to capture small, peripheral nodules—all while accessing the shortest path to these challenging targets.
“Oxford is pleased to provide funds to support Veran’s commercialization and innovation of their SPiN Thoracic Navigation System™,” said Christopher A. Herr, senior managing director at Oxford Finance. “We believe Veran is well positioned to capture physicians and hospital systems that have been disappointed by the current standard of care, legacy technology solutions and inefficient patient flow pathways.”
“We’re very encouraged by the rapid growth we’ve seen since our investment in Veran last year. We continue to be excited about Veran’s innovation pipeline, the company’s growing body of clinical evidence, and its footprint in leading lung cancer treatment programs,” said Kirk Nielsen, Veran board member and managing director at Versant Ventures.
“This infusion of working capital will allow Veran to expand its commercialization efforts and continue building on evidence that demonstrates the impact this technology can have for cancer patients,” said David Kereiakes, Veran board member and a principal at River Cities Capital Funds.
About Oxford Finance LLC
Oxford Finance is a specialty finance firm providing senior secured loans to public and private life sciences and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets. Oxford has originated over $4 billion in loans, with credit facilities ranging from $5 million to $100 million. Oxford is headquartered in Alexandria, Virginia, with additional offices serving San Diego, California; Palo Alto, California; Salt Lake City, Utah and the greater Boston area. For more information, please visit http://www.oxfordfinance.com
About Versant Ventures
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, nearly 50 Versant companies have achieved successful acquisitions or IPOs. For more information, please visit http://www.versantventures.com
About River Cities Capital Funds
River Cities is a growth equity firm investing in high-potential healthcare and information technology companies. A consistent, cohesive team has honed its strategy over five funds with compelling performance. River Cities seeks to be a business partner first and a capital provider second, investing significant human capital to leverage its domain expertise and a network of thought leaders assembled over the last 20 years. With more than $500 million of capital raised and a consistent track record of 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 $200 million Fund V.
For more information, please visit http://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.