US-based medical device company Moximed has secured $61m in a Series D preferred stock financing led by Elevage Medical Technologies, with an option to receive up to $30m.
The new investors, including Cormorant Asset Management and Warren Point Capital, have participated in the financing round, along with existing investors.
The existing investors include New Enterprise Associates (NEA), Future Fund, Advent Life Sciences, Gilde Healthcare, Vertex Ventures HC, GBS Venture Partners, and Morgenthaler Ventures.
Moximed intends to use the proceeds from the financing round to advance the commercialisation of its MISHA Knee System in the US.
As part of the financing, Michael Wasserman from Elevage Medical will be appointed as a member of the Moximed Board of Directors.
Wasserman said: “Elevage is thrilled to partner with Moximed as it continues to generate commercial momentum. The size of Moximed’s market opportunity, the product differentiation, and its clinical value proposition are highly compelling attributes.
“We are pleased that our investment will help fuel significant expansion of the Moximed business and positively impact the lives of countless patients.”
Moximed president and CEO Chris Gleason said: “This financing is the validation of the significant market opportunity for the MISHA Knee System. We are seeing tremendous interest from surgeons and patients, and we are excited to rapidly expand our commercial infrastructure to address evolving patient needs in this growing market.”
MISHA Knee System, which is said to be the world’s first implantable shock absorber (ISA) for knee OA, is intended for knee OA patients for whom previous treatments are ineffective.
Knee OA, also known as degenerative joint disease, is predominantly caused due to wear and tear and progressive loss of articular cartilage.
Moximed designed and developed the MISHA Knee System using clinically established benefits of weight load reduction on diseased joints, based on a decade of clinical research.
The system is implanted during an outpatient procedure to mitigate pain, improve function, and delay the need for total knee replacement in some patients, said the medical device company.
Moximed chief financial and strategy officer James Leech said: “A medical device financing of this magnitude is a strong vote of confidence in this competitive funding environment.
“Our unique market opportunity, technology, and high calibre team enabled us to attract blue-chip investors in this important financing. We look forward to using these proceeds to expand patient and surgeon access to our breakthrough technology.”
Moximed co-founder and Board of Directors chairman Josh Makower said: “I am extremely proud of the Moximed team for taking the next steps in delivering a highly impactful product that addresses a significant clinical need for a large number of people.”
