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  • Mainstay Medical Completes $20.0M (EURO 15.3M) Oversubscribed Series B Venture Financing

    September 27th, 2012 No comments

    Fountain Healthcare Partners (Ireland) lead Series B Financing
    Series A Financing led by Sofinnova Partners (France) in 2010
    Proceeds will advance product development and clinical studies towards
    regulatory approval for market release in the US and Europe.

    Dublin, Ireland, 26th September, 2012 – Medical device company Mainstay
    Medical Ltd. today announced that is has successfully completed an
    oversubscribed Series B financing round for $20.0M (EURO 15.3M) led by Fountain
    Healthcare Partners (Ireland – “Fountain”). Other new investors in the
    Series B round include Medtronic (US – “Medtronic”), Capricorn Venture
    Partners (Belgium – “Capricorn”) and Seventure Partners (France –
    “Seventure”). Existing Series A investors Sofinnova Partners (Sofinnova –
    France), and Twin City Angels (TCA – Minneapolis, USA) also participated.
    This funding will advance the on-going development of Mainstay Medical’s
    disruptive new medical device for the treatment of patients with chronic
    non-specific low back pain. As part of the financing, Mainstay Medical
    relocated its head office and executive leadership to Dublin, Ireland from
    Minneapolis, Minnesota US.

    The World Health Organization reports that low back pain is the most
    prevalent of musculoskeletal conditions, and affects nearly everyone at some
    point in time. Low back pain is the number one cause of lost working days in
    the developed world, with a staggering 7.5 Million people in the US with
    chronic back pain at any time, and similar numbers for Europe. The cost to
    society of lost working days and health care treatment is enormous. For many
    of these people, low back pain results from malfunction of muscles
    responsible for spine stability. Mainstay Medical has developed a novel
    approach using an implantable device like a “pacemaker for the back” to
    restore spine stability to ameliorate pain and allow return to work.

    Mainstay was founded in 2008 by serial entrepreneur Dr. Danny Sachs, and
    then under the leadership of CEO Peter Crosby, Mainstay conducted a European
    Feasibility Study across four leading clinics in Europe. The promise of the
    new therapy was clearly demonstrated in that Feasibility Study and in
    parallel the Company also advanced the development of its own proprietary
    products, and added to its intellectual property portfolio. Mainstay will
    use the proceeds of the Series B financing to expand the team for product
    development, quality, clinical, regulatory and administration, as it moves
    towards its goals of achieving regulatory approval in Europe and running a
    global clinical trial leading to a PMA submission to the FDA in the US.

    Dr. Manus Rogan, Co-Founder and Managing Partner at Fountain Healthcare
    Partners said, “We are excited about Mainstay, and the potential to relieve
    the back pain suffered by millions of people worldwide. We are particularly
    pleased that Mainstay and the syndicate of international investors has
    recognised the economic value and attractiveness of Ireland as a location to
    build an innovative medical device company.”

    Mainstay Medical Chief Executive Peter Crosby commented, “Our early clinical
    results are very encouraging, and with this new investment we will be able
    to make great progress in advancing Mainstay’s products from concept to
    reality, and start to build our business.” Mr. Crosby added, “The Mainstay
    approach has the potential to save billions of dollars on health care
    expenditure, while also creating a multi-billion market for us, so it is a
    winning situation all around.”

    Antoine Papiernik, Managing Partner at Sofinnova Partners remarked, “We saw
    the vision of Mainstay when it was presented to us as just an idea, and we
    took the risk to lead the first investment. It is great to see that the
    company has advanced so far, so quickly, and so efficiently. We are pleased
    to add such quality new investors to the syndicate.”

    As part of the financing Dr. Manus Rogan (Fountain) will join the Board of
    Directors, and Dr. Stephen Oesterle (Medtronic), Dr. Frank Bulens
    (Capricorn) and Iain Wilcock (Seventure) will become Observers. Existing
    independent director Andrew Weiss (CEO Coaxia, past head of Medtronic
    Neuromodulation business) will continue.

    -ends-

    About Mainstay Medical Ltd

    Mainstay Medical Ltd. is a privately held, venture backed, Dublin (Ireland)
    based medical device company. The company develops products for patients
    with chronic low back pain. Check back often as we create our web presence
    at www.mainstay-medical.com

    About Fountain Healthcare Partners

    Fountain Healthcare Partners (“Fountain”) is a life science focused venture
    capital fund headquartered in Dublin, Ireland with a second office in New
    York, US. Fountain specialises in making investments in biotechnology,
    medical device, specialty pharma and diagnostic companies.
    www.fh-partners.com

    About Sofinnova Partners

    Sofinnova Partners is an independent venture capital firm based in Paris,
    France. For 40 years, the firm has backed nearly 500 companies at different
    stages of their development – pure creations, spin-offs, as well as
    turnaround situations – and worked alongside Europe’s key entrepreneurs in
    the Life Sciences, Technology and Cleantech sectors. With EURO 1.1 billion of
    funds under management, Sofinnova Partners’ experienced team and hands-on
    approach in building portfolio companies through to exit have created market
    leaders. www.sofinnova.fr

    About Medtronic

    Medtronic, Inc. (NYSE:MDT), headquartered in Minneapolis, is the world’s
    largest medical device manufacturer with revenues over $16 billion, and is
    active in many sectors – alleviating pain, restoring health and extending
    life for millions of people around the world. www.medtronic.com

    About Capricorn Venture Partners

    Capricorn Venture Partners is an independent pan-European venture capital
    and asset manager seeking to invest in technology based growth companies.
    Capricorn’s dedicated investment teams are composed of experienced
    investment professionals with deep technology expertise and a broad
    industrial experience. Capricorn is investing out of its Capricorn Cleantech
    Fund, its Capricorn Health-tech Fund and is managing Quest for Growth, a
    cross-over fund quoted on EuroNext Brussels, and the Quest Management
    Cleantech Sicav. www.capricorn.be

    About Seventure Partners

    Seventure Partners in Paris, France, is one of the leading venture capital
    firms in Europe. Seventure manages EURO 500m and has invested since 1997 in
    innovative businesses with high growth potential in Information &
    Communication Technologies and in Life Sciences all over Europe. Seventure
    is a subsidiary of Natixis, part of BPCE, one of the largest French banks.
    www.seventure.fr

    About Twin City Angels

    Twin Cities Angels was established in 2006 to provide a formal organization
    for entrepreneurially-minded angel-investors in the Minneapolis and St. Paul
    area. TCA provides seed and early-stage capital in the range of $25,000 to
    $2 million, an investment range not generally served by venture capitalists.
    The Twin Cities Angels Fund I, LLC is a contributed capital and
    “side-by-side” angel fund with members and partners from throughout
    Minnesota. http://www.tcangels.com/

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