Developer of the world's smallest surgically implanted blood pump for long-term use in heart failure patients, today announced that it has raised a total of $30 million in an oversubscribed Series D financing round. The round was led by a new investor, MacAndrews & Forbes Holdings and Forbion Capital Partners.
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SADDLE BROOK, NJ, CircuLite, Inc., the developer of the world's smallest surgically implanted blood pump for long-term use in heart failure patients, today announced that it has raised a total of $30 million in an oversubscribed Series D financing round. The round was led by a new investor, MacAndrews & Forbes Holdings Inc., and Forbion Capital Partners, a founding venture capital investor of CircuLite and the largest investor in the Company.
Other existing investors in the Company include: Credit Agricole Private Equity, Saints Capital, Foundation Medical Partners, and SB Life Science Ventures. Lazard Freres & Co. LLC served as placement agent for the financing. In conjunction with the financing, Eric A. Rose, M.D., Executive Vice President of Life Sciences at MacAndrews & Forbes, and Michael C. Borofsky, Senior Vice President of MacAndrews & Forbes, have joined CircuLite's Board of Directors.
Proceeds from the Series D financing will support the anticipated European commercial launch of the Synergy circulatory support system for patients with Class IIIb and early Class IV heart failure, pending the receipt of CE Mark approval expected in the first half of 2012. The Series D funding will also support the U.S. clinical development of Synergy from a pilot IDE study through the initiation of a pivotal trial, and will enable CircuLite to initiate a first-in-man study in Europe with an endovascular system.
"The technology on which CircuLite was founded has proven to be a broad platform that has led to the development of a rich product pipeline," stated Dr. Avi Molcho of Forbion Capital Partners, a director on CircuLite's Board. "The Company's products address the largest heart failure patient population when compared to any other device-based treatment, ranging from the less sick to severe heart failure patients, positioning CircuLite as the leading future player in this field."
"This significant and oversubscribed Series D financing underscores the substantial potential of the Synergy system to improve heart failure treatment. These proceeds will support our continued leadership position in the field as we advance our pipeline of products for heart failure patients, including launch of our Synergy system in Europe in 2012," said Paul Southworth, President and CEO of CircuLite.
"The cardiology and cardiac surgery communities are seeking new, minimally invasive options for treating heart failure patients, and as a result, are very interested in the Synergy system," said Dr. Rose of MacAndrews & Forbes. "CircuLite's leadership in the development of innovative circulatory support systems and the clinical and commercial promise of Synergy in Europe and the U.S. all make CircuLite an attractive investment opportunity."
Prior to joining MacAndrews & Forbes in 2007, Dr. Rose was Chairman of the Department of Surgery and Surgeon-in-Chief of the Columbia Presbyterian Center of New York Presbyterian Hospital. Dr. Rose is a past President of the International Society for Heart and Lung Transplantation and was also the Morris & Rose Millstein Professor of Surgery at Columbia University's College of Physicians and Surgeons' Department of Surgery. Dr. Rose has a M.D. from Columbia University College of Physicians & Surgeons and a B.A. from Columbia University.
Prior to joining MacAndrews & Forbes in 2003, Mr. Borofsky was with the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, where he specialized in mergers and acquisitions, and was an analyst in the treasury group of Goldman Sachs Group, Inc. Mr. Borofsky has a J.D. from Columbia University School of Law and a B.A. from Yale University.
Synergy is a miniature ventricular assist system intended to offer a new minimally invasive treatment option for patients with chronic heart failure who are not responding to standard medical care. The system is intended to offer patients significant benefits over standard therapies, including reduced symptoms of heart failure and associated re-hospitalizations, as well as improved exercise tolerance and quality of life.
Synergy's Micro-Pump is the size of a AA battery, circulates up to 4.25 liters of blood per minute, and is intended to reduce the heart's workload while improving blood flow to vital organs. Synergy supplements the heart's native pumping capacity and preserves its ability to respond to the patient's cardiac output demands. The system is surgically implanted using a mini-thoracotomy and the Micro-Pump is placed in a pacemaker-like pocket.
CircuLite is developing disruptive solutions to improve the treatment of advanced heart failure. The Company's minimally invasive circulatory support systems are intended to work in conjunction with the heart to enhance clinical outcomes and improve quality of life for patients and their families. Synergy, currently in a CE Mark clinical trial, features the world's smallest surgically implanted blood pump for long-term use in patients with NYHA Class IIIb/early IV disease. Next-generation circulatory assist systems in development include an endovascular system, a right-heart system, a pediatric system, and an all-support system.