Healthcare Industry News: CoreValve
News Release - September 28, 2017
Magenta Medical, Developer of Novel Heart Failure Therapies, Secures $15 Million in Series B FinancingRound led by Abiomed Inc. and Pitango Venture Capital, joined by JAFCO and a group of private investors led by Prof. Jacques Seguin; Dr. David Israeli appointed CEO
TEL-AVIV, Israel, September 28, 2017 -- (Healthcare Sales & Marketing Network) -- Magenta Medical, a medical device company in the field of transcatheter heart failure therapy, announced today the successful closing of its $15M series B financing round. The syndicate of investors is comprised of Abiomed Inc., a leader in transcatheter heart pumps, Pitango Venture Capital, among Israel's leading venture capital groups, JAFCO Co., Ltd., Japan's leading venture capital firm, and a group of industry luminaries and cardiovascular experts led by Prof. Jacques Seguin - a cardiac surgeon and a prolific inventor and entrepreneur. Among others, Prof. Seguin founded CoreValve Inc. and led its acquisition by Medtronic Inc. for over $800 million in 2009. Following the closing, he is joining Magenta's Board of Directors.
Prof. Schwammenthal, a cardiologist, and Mr. Tuval, a mechanical engineer, were also the founders of Ventor Technologies, a former Pitango portfolio company that developed an innovative catheter-based system for the minimally invasive replacement of the aortic valve. Ventor was acquired for $325 million by Medtronic Inc. in 2009.
Heart failure has been recognized as an epidemic in the Western World, afflicting approximately 6.5 million people in the U.S. alone, with 960,000 new cases diagnosed annually. There are over one million hospitalizations per year in the U.S. with a primary diagnosis of heart failure (AHA, 2017). More than 90% of all hospital admissions in acute heart failure are caused by congestion, i.e. fluid retention that elevates systemic venous pressure and burdens the heart and the kidneys. Diuretics, the mainstay of therapy in these patients, fall short, as evidenced by the high rates of deteriorating kidney function and hospital readmission. Magenta offers a catheter-based therapy aimed at managing congestion through faster and safer fluid and salt removal, while protecting and potentiating kidney function.
The economic burden of heart failure is large and rapidly growing, with an estimated annual cost to the U.S. economy of over $30.7 billion in 2012. This amount is expected to reach a staggering $69.7 billion by 2030 (AHA, 2017).
Prof. Ehud Schwammenthal, Magenta's Co-founder and Chief Medical Officer: "Since its inception, Magenta has made great progress and was able to bring its first product into clinical trials in Europe. The current funding will allow us to expand and accelerate the clinical program on the path to approval in Europe and a pivotal study in the U.S. With the company's growth and my increased focus on the medical and clinical aspects of the operation, we as founders decided to extend an offer to our chairman, Dr. David Israeli, to serve as CEO of the company. We are delighted that David accepted and we look forward to a continued fruitful partnership".
Dr. David Israeli, newly appointed CEO: "Having witnessed the progress of Magenta's exciting technology as its Chairman of the Board, I was delighted to accept the role of CEO at Magenta Medical. Together with Prof. Schwammenthal and Mr. Tuval, both with a proven track record as medical device entrepreneurs, we aim to position Magenta as a groundbreaking company in the treatment of Acute Heart Failure".
About Abiomed Inc.
Based in Danvers, Massachusetts, ABIOMED, Inc. is a leading provider of medical devices that provide circulatory support. Our products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. For additional information please visit: http://www.abiomed.com.
About JAFCO Co., Ltd. (http://www.jafco.co.jp)
JAFCO Co., Ltd., is Japan's leading venture capital and buyout firm, founded in 1973. It operates a series of funds to channel risk capital to seed and early stage companies mainly in Japan, US, China, Taiwan, Korea, India, and Singapore. Targeting high-potential companies with innovative and creative management strategies, JAFCO provides support for enhancing corporate value and expanding business through deep involvement in management. Funds under management currently total ¥434.8 billion on a commitment basis as of March 31, 2017.
About Pitango Venture Capital (http://www.pitango.com)
Pitango has been investing in technology ventures since 1993 and now has more than $2 billion under management. With offices in Israel and NYC, Pitango has invested in more than 250 companies to date, among them companies that have gone public or have been acquired such as Varonis (NASDAQ: VRNS), Skycure, acquired by Symantec (NASDAQ: SYMC), Check (acquired by Intuit), Borderfree (NASDAQ: BRDR), acquired by Pitney Bowse, Anobit, acquired by Apple (NASDAQ: AAPL), superDimension, acquired by Covidien, Aeroscout, acquired by Stanley Healthcare Solutions.
Pitango invests via two parallel funds, Pitango Early Stage and Pitango Growth, in Israeli tech and healthcare companies.
Learn more at: pitango.com.
About Magenta Medical
Founded in October, 2012, Magenta Medical Ltd. is a privately held company that is engaged in the development of novel device solutions for the treatment of acute heart failure. Learn more at: http://magentamed.com.
Source: Magenta Medical
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