Healthcare Industry News: Electronic Brachytherapy
News Release - August 11, 2008
Xoft Secures $25 Million in Additional Funding for Award-Winning Electronic Brachytherapy TechnologyCompany Prepares to Commercialize New Endometrial Indication as Adoption for its Breast Cancer Application Continues to Grow
SUNNYVALE, Calif., Aug. 11 (HSMN NewsFeed) -- Xoft, Inc., developer of Electronic Brachytherapy (eBx), a proprietary cancer treatment platform, announced today that the company has closed its Series E preferred stock financing, raising a total of $25 million in additional funding. An award-winning new method of delivering non-isotope-based radiation, the Axxent® Electronic Brachytherapy System uses a miniaturized X-ray source that can deliver localized and targeted radiation treatment in virtually any clinical setting under the supervision of a radiation oncologist. All of Xoft's major investors participated in the Series E financing, which was led by Chicago Growth Partners, a new investor in Xoft. Additionally, as part of the financing, Arda Minocherhomjee, Ph.d., managing partner of Chicago Growth Partners, joined the Xoft Board of Directors.
"We have experienced strong market acceptance since commercializing the Axxent System for the treatment of breast cancer late last year," said Michael Klein, Xoft CEO and president. "These funds will be used to complete the post market Electronic Xoft Intersociety Brachytherapy Trial (EXIBT) and patient registry of 400 patients and expand market penetration of our breast cancer application, as well as accelerate commercialization of our new endometrial and rectal indications."
Developed for accelerated treatment of early stage breast cancer and endometrial and rectal indications, the Axxent® Electronic Brachytherapy System is also cleared for use in the treatment of other cancers or conditions where radiation therapy is indicated. As a platform technology, the Axxent System addresses a variety of oncological and non-oncological indications. The Axxent System is designed to deliver non-radioactive therapy directly to cancer sites with minimal radiation exposure to surrounding healthy tissue. Designed to deliver electronic, X-ray-based radiation treatment, the proprietary Axxent treatment platform can be used in many clinical settings under the supervision of a radiation oncologist, without the need for a shielded room. As a result, tens of thousands of patients annually will have greater access to therapy that is delivered more easily and conveniently.
"In addition to believing that the Xoft Electronic Brachytherapy System is a disruptive and novel technology, we were excited to support Xoft because we also see a number of significant market factors that may dramatically accelerate adoption," said Dr. Minocherhomjee. "In breast cancer, we know there are still tens of thousands of women annually who choose to have a mastectomy instead of pursuing breast conserving therapies and thousands more that do not comply with their radiation treatment. Much of this is based on fear, inconvenience and access issues that are solved by eBx. Finally, the Axxent System aligns well with recent Nuclear Regulatory Commission recommendations to evaluate alternatives to radiation sources, such as isotopes, that may pose a national security risk. Because eBx uses an electronic source, it mimics the therapeutic value of isotopes while mitigating such national security concerns, representing a very viable alternative."
"Based on expanded FDA clearances for the Axxent System and prestigious awards from Frost & Sullivan and R&D Magazine recognizing innovation and impact on the oncology industry, we are excited about the future of this important technology and are pleased that our investors have shown continued commitment to investing the necessary resources to fuel our growth and market expansion," added Klein.
About Xoft, Inc.
Xoft, founded in 1998, develops Electronic Brachytherapy (eBx) systems based upon miniaturized X-ray tube technology for the practice of radiation oncology in virtually any clinical setting, eliminating the need for heavily shielded environments. Xoft provides a "point of care model" that is patient centric and accessible to a broader spectrum of patients and their physicians. The Axxent treatment platform provides a therapeutic dose of intracavitary radiation directly to the region at risk with minimal radiation exposure to surrounding healthy tissue and without the complex handling, resource logistics and costs associated with using radioactive isotopes. Xoft aligns with the Nuclear Regulatory Commission's (NRC) directive to seek alternatives for radioactive medical isotopes. For more information, visit http://www.xoftinc.com.
Axxent is a registered trademark of Xoft, Inc.
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