Healthcare Industry News: Echocardiography
News Release - February 6, 2008
POINT Biomedical Corp. First Tranche of $50 Million in Equity FinancingSAN CARLOS, Calif.--(HSMN NewsFeed)--POINT Biomedical Corp. announced today that it closed $25 million, the first tranche of a $50 million private equity financing led by Vedanta Capital LLC. POINT expects to draw the second tranche in the second quarter of 2008, upon the achievement of certain milestones.
The company will use the proceeds to complete the clinical development of its lead product, CARDIOsphere® (PB127). Larry Posner, MD, Vedanta Partner said, “CARDIOsphere has the potential to allow patients to undergo evaluation for coronary artery disease in a cardiologist’s office without the radiation exposure of currently available perfusion technologies.”
Parag Saxena, Co-Founder and Managing Partner of Vedanta Capital, and Dr. Posner will join POINT’s Board of Directors. Other major investors in the financing include Amberbrook, CHL Medical Partners, De Novo Ventures, Fininvest, Institutional Venture Partners, INVESCO Private Capital, New Leaf Venture Partners, Saints Capital, Saratoga Ventures, and William Blair Capital Partners. Mr. Saxena said, “We are enthusiastic about our investment in POINT Biomedical because of its unique patented technology, a $5 billion global market opportunity and a potentially compelling safety and economic benefit.”
“We are delighted by the commitment of Vedanta and our current shareholders to the Company and CARDIOsphere. This financing will allow us to complete the clinical trial programs required for submission of our amended NDA for CARDIOsphere, and to begin preparations for commercialization into a significant market where we anticipate substantial growth in the next few years,” said Tom Feldman, POINT’s President and Chief Executive Officer.
More than 13 million Americans suffer from coronary artery disease and an even larger number of individuals have risk factors or symptoms that make them potential candidates for coronary artery disease assessment by non-invasive means. The number of non-invasive imaging studies for diagnosing coronary artery disease in the U.S. in 2007 is estimated to have exceeded 12 million. CARDIOsphere is designed to allow cardiologists to diagnose coronary artery disease in the office or hospital using standard ultrasound equipment and without the use of radioactive isotopes.
About POINT Biomedical
POINT Biomedical is developing a pipeline of products that leverage the unique properties of the biSphere technology to improve the management of ischemic diseases. The initial focus is on myocardial ischemia caused by coronary artery disease. The lead product candidate is CARDIOsphere, a perfusion imaging agent that is designed to measure myocardial perfusion using ultrasound (Echocardiography). POINT’s proprietary biSphere® platform technology has a highly scalable and efficient manufacturing process.
Commercial scale manufacturing of CARDIOsphere will be performed in the company’s 10,000 square foot pharmaceutical manufacturing site in San Carlos, California.
The matters discussed in this press release are forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. The receipt of regulatory approvals, results of product development programs, and clinical efficacy of and market demand for products, among other matters, may differ significantly from the discussion of such matters in the forward-looking statements.
Source: POINT Biomedical
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