Healthcare Industry News: vascular closure
News Release - May 23, 2006
Cardiva Medical, Inc. Completes $13.99 Million Series C FinancingProceeds to Further Expand Sales Organization
MOUNTAIN VIEW, Calif., May 23 (HSMN NewsFeed) -- Cardiva Medical, Inc., a privately held medical device company, announced today it has closed a $13.99 million Series C financing. Cardiva's focus is on developing and commercializing vascular access management and closure devices with unsurpassed safety and ease-of-use when compared to existing closure options. The financing was lead by Galen Partners; and included existing investors Stockton Partners, Sycamore Ventures, Harbinger VC Corp., W.I. Harper Group, and Amkey Ventures.
"The completion of this financing, with such a well-respected investor group is a significant milestone for us," commented Augustine Lien, Founder, Chairman and Chief Executive Officer of Cardiva. "The high level of interest we received from investors further validates the strength of our business model, the market adoption of the Boomerang technology, and the ability of the management team to execute its business plan."
"We think that Cardiva and its Boomerang(TM) technology have the ability to become the market leader in vascular access site management and closure," said Zubeen Shroff, Managing Director of Galen Partners. "This financing will allow Cardiva to continue its rapid sales growth in the U.S. and accelerate the development and regulatory clearance of its future products to the marketplace."
Dr. Ken Goldman, Managing Director of Stockton Partners, commented, "Galen Partners will add tremendous healthcare business scale-up expertise to Cardiva's Board of Directors, which will be important as Cardiva moves forward". Dr. Goldman further noted, "With the support from Cardiva's Medical Advisory Board of leading physicians, the seasoned management team at Cardiva has done an excellent job in developing and commercializing the Boomerang(TM) technology, which has directly led to the success of this financing."
The Boomerang(TM) Wire System has been cleared by the U.S. Food and Drug Administration to assist clinicians in managing and closing femoral artery puncture sites, following percutaneous procedures including angiography, angioplasty or stenting. The Boomerang(TM) Wire System has obtained the CE, which will allow commercialization in the European Union. Following FDA clearance, the company began actively marketing the Boomerang(TM) device through its direct sales organization in the United States in first half of 2005. The global vascular closure market opportunity is estimated to be $1 billion to $1.5 billion.
About the Boomerang(TM) Wire System
The Boomerang(TM) Wire System is designed to be more comfortable and cost- effective for patients undergoing manual compression of the femoral artery opening, and also provide unsurpassed safety and ease-of-use when compared to existing vascular closure devices used to close the femoral artery following catheterization.
It is estimated that almost twelve million percutaneous catheterizations are performed world-wide, with approximately 70% being diagnostic angiography. At the end of the percutaneous procedure, the thin Boomerang(TM) device is inserted into the artery through the existing arterial sheath used during the catheterization procedure. Once inside the artery, the Boomerang device opens a flat, low-profile disc. Upon removal of arterial sheath, the Boomerang disc is positioned against the opening of the femoral artery forming a tight seal and immediate hemostasis.
Once the patient arrives into the recovery room, the Boomerang disc is collapsed and completely removed from the artery, leaving nothing behind in the tissue tract or artery. Final closure occurs with just a few minutes of finger pressure of the arterial puncture site. The safety and ease of use of the Boomerang(TM) device is in sharp contrast to the traditional methods doctors have used to close the opening of the femoral artery, which include manual compression directly over the femoral puncture site or vascular closure devices, which use various biomaterials (e.g., collagen, sutures, staples, or gels) to create a physical seal of the opening in the femoral artery.
About Cardiva Medical, Inc.
Founded in July, 2002, and headquartered in Mountain View, Calif., Cardiva Medical, Inc. is a privately held medical company focused on developing and commercializing vascular access site management and closure devices with unsurpassed safety and ease-of-use. Cardiva Medical, Inc. is funded by leading venture capital investors, including Galen partners, Stockton Partners, Sycamore Ventures, Harbinger Venture Corp., and W.I. Harper Group. Additional information about Cardiva Medical, Inc. can be found on www.cardivamedical.com.
About Galen Partners
Galen Partners is a New York-based private equity firm, founded in 1990 and focused exclusively on providing equity financing to mid-to-later stage growth companies in the healthcare industry. With $648 million under management raised through four funds, Galen has invested in more than 60 companies. The firm emphasizes investments within medical device, technology- enabled outsourcing services and specialty pharmaceutical sectors. Galen's approach, called Collaborative Capital, enables them to work with company management to create disruptive strategies that generate revenue growth and help achieve full market potential. Over the past sixteen years, Galen Partners has been particularly adept at identifying, backing and developing future trend-setting, industry leaders including: Pyxis Corporation (a Cardinal Health company), CryoLife, Inc. (CRY), Encore Medical Corporation (ENMC), Lumenos, Inc. (a Wellpoint company), Ocular Sciences, Inc. (a CooperVision company), MiniMed, Inc. (a Medtronic company), Medicode, Inc. (a United Healthcare company), Stericycle, Inc. (SRCL), Taro Pharmaceutical Industries Ltd. (Taro), Vasogen, Inc. (VSGN) and Vitas Healthcare Corporation. For more information about Galen Partners please visit www.galenpartners.com.
About Stockton Partners
Stockton Partners provides venture capital funding to companies in the fields of medical devices, life science enabling tools, biotechnology, pharmaceuticals, and medically-related IT. Based in New York City, Stockton Partners was founded by prominent US and UK investors from the medical, pharmaceutical and financial services worlds. It is led by highly experienced medical analysts and advisors. Stockton Partners takes a hands-on approach, providing portfolio companies with strategic advice, management consulting and an extensive network of contacts throughout the global medical and financial fields.
About Sycamore Ventures
Sycamore Ventures is a team of dedicated investment professionals with a broad range of industry experiences in communication, software, and life sciences. In August 1995 Sycamore's managing partners spun out of Citicorp Venture Capital Ltd. where they had aggregate investment experience of more than 45 years. Today, Citigroup remains one of Sycamore's largest investors. Sycamore manages more than $550 million in committed capital.
NOTE: Cardiva, Boomerang are trademarks/registered trademarks of Cardiva
Source: Cardiva Medical
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