Intrinsic Therapeutics, a medical device company that has developed a product to improve outcomes in lumbar discectomy patients, has recently closed a $49m round of financing.
The financing included a $28 million equity round co-led by New Enterprise Associates (NEA) and Delos Capital, coupled with a $21 million debt facility with CRG. Other investors include Greenspring Associates, Quadrille Capital and a corporate strategic.
The Company's Barricaid Anular Closure Device is designed to prevent repeat herniation in patients undergoing lumbar discectomy surgery to treat sciatic pain caused by a herniated disc. Luke D?ster with CRG commented, "We are very happy to join with a prestigious group of investors to support Intrinsic as they bring this important technology to the market in the U.S. and around the world.
“In today's changing healthcare environment, technologies that conserve resources and reduce costs to the healthcare system will fit squarely within the paradigm of hospital and payer cost-containment."
In December 2016, the Company successfully filed a Pre-Market Application (PMA) with FDA for approval in the United States. This filing is based on the outcomes of a two-year, multi-center, prospective randomized superiority trial of 554 subjects at the greatest risk of reherniation and reoperation. This is the first superiority trial for such a spinal device.
Jeani Delagardelle, who has joined Intrinsic's Board representing Delos, commented, "We are extremely excited to be investing in Intrinsic at this later stage of their development. The company has generated conclusive clinical data which supports a large global opportunity including the US market as early as next year."
Describing the market opportunity, Prof. P. Douglas Klassen, Chief of Neurosurgery at St. Bonifatius Hospital, Lingen, Germany stated, "Approximately 1 million discectomies are performed every year around the globe and 40% of these patients will leave the operating room after discectomy with a large hole remaining in the outer rim of the disc, the anulus. By simply sealing these large defects, patient outcomes can be improved significantly."
"We are excited to welcome Delos and CRG as partners as we continue the process toward US market access," said Cary Hagan, Intrinsic's President and Chief Executive Officer.
"The additional capital will allow us to continue our development efforts on reimbursement pathways for this compelling new technology with a sharp focus on demonstrating clear health economic value to surgeons, payers and hospital systems."
Intrinsic Therapeutics is a medical device company focused on delivering a safe treatment to improve efficacy in patients who are at a disproportionately high risk of requiring repeat surgeries due to reherniation following lumbar discectomy surgery.
Intrinsic currently markets and sells the Barricaid in Europe, Australia, Mexico, S. America, the Middle East and selected countries in other regions around the world. In the United States, Intrinsic Therapeutics is seeking regulatory approval of the Barricaid Anular Closure device.