NorthStar Medical Technologies, a producer and distributor of radioisotopes for medical applications, has secured $100m financing from Oberland Capital Management to expand domestic Mo-99 radioisotope production capabilities.
NorthStar has received $75m at closing with an ability to draw an additional $25m before 31 December 2020, based on the company’s option.
The proceeds from the financing will also be used to complete programs to improve the efficiency of the production of Mo-99, implement additional developments for the RadioGenix System (technetium Tc 99m generator) and continue to advance its R&D activities.
The RadioGenix System was approved by the FDA and commercialized in 2018 as the first and only on-site, automated isotope separation system, for use with non-uranium/non-highly enriched uranium based Mo-99, to supply customers with the critical diagnostic imaging radioisotope technetium-99m (Tc-99m).
NorthStar president and CEO Stephen Merrick said: “This financing agreement with Oberland Capital enables us to execute on our clearly defined strategy to build solid, sustainable momentum for NorthStar as a fully commercial enterprise.
“Market uptake for RadioGenix Systems continues in line with our strategy, with RadioGenix Systems increasingly providing customers with the important medical radioisotope Tc-99m for patients’ diagnostic tests – on time and when they need them.”
RadioGenix System is a separation platform, approved for processing non-uranium/non-highly enriched uranium based molybdenum-99 (Mo-99) for the production of the important medical radioisotope, technetium-99m (Tc-99m).
NorthStar claimed that before the availability of RadioGenix technology, the US supply chain for Mo-99 has shown frequent and sometimes severe interruptions, resulting in negative impact on patient healthcare.
Oberland Capital managing partner Andrew Rubinstein said: “Our investment in NorthStar aligns with our strategy of investing in commercial-stage healthcare companies with differentiated products serving significant unmet needs.
“As the first domestic producer of Mo-99 in more than 30 years, NorthStar’s innovative technology has the potential to provide the US healthcare system with reliable supply of the much-needed diagnostic imaging radioisotope Tc-99m, and we are pleased to have the opportunity to partner with NorthStar and contribute to the company’s growth.”