AirXpanders, Inc. Raises $8M Through Series C Financing and Working Capital Line
3/2/2011 7:04:08 AM
PALO ALTO, CA--(Marketwire - 03/02/11) - AirXpanders Inc., a company developing technology to address current unmet needs for patients who require tissue expansion for reconstructive surgery, today announced that it raised $8 million through two financings. The company closed a $5 million Series C Financing led by GBS Ventures in April 2010 and secured an additional $3 million working capital line from Oxford Finance Corporation in February 2011.
The investments will support the company's planned Investigational Device Exemption (IDE) trial for the AirXpanders™ system in mastectomy patients. This will be the company's second clinical study and will serve as the basis for its application in support of a 510(k) clearance. In addition to the FDA approach in the United States, the company is seeking a CE Mark in Europe and international distribution partners for the AirXpanders system.
"We're extremely excited to invest in a company that has made the first innovation in tissue expansion in over three decades," said Brigitte Smith, Managing Director, GBS Venture Partners and AirXpanders Board Member. "AirXpanders revolutionizes the tissue expansion process with a patient controlled tissue expander that has the potential to dramatically shorten expansion time from months to weeks; significantly reduce pain and discomfort for the patient; improve cosmetic outcomes and; reduce the time and cost that physicians and hospitals incur in the tissue expansion process."
Breast Cancer is diagnosed in close to a quarter of a million women each year in the U.S. While many have mastectomies, up to one half are never told about a reconstructive option by their surgeon. Of the 85,000 women in the U.S. that go on to a reconstruction procedure annually, one of their main options is the tissue expansion process, which can be painful, lengthy and time consuming using a conventional saline expander to stretch their skin sufficiently to accommodate a permanent breast implant.
"Oxford is privileged to provide financing to support the continued development of AirXpanders' tissue expansion system," said Christopher A. Herr, managing director at Oxford Finance. "There is a tremendous market potential for the company's device and an opportunity to provide a more comfortable recovery process for individuals undergoing breast reconstruction. AirXpanders' impressive management team has the experience needed to successfully bring this product to market."
In the fourth quarter of 2009 and the first quarter of 2010, the Company successfully implanted ten AirXpanders devices in seven patients in a single-center clinical study in Australia. Patients in the study have reported great enthusiasm for the system, the first woman having achieved the initial targeted expansion in only eight days. These results have been submitted to the FDA as a part of the company's IDE submission and are also under review for publication in a peer reviewed journal. The Company has also conducted extensive bench and animal testing of the AirXpander System.
"We are so pleased to have such high quality investors understand the significant need for new tissue expansion technology and to support the company as it works towards the launch of its first product," said Scott Dodson, President and Chief Executive Officer.
AirXpanders Inc. is a tissue-expansion company focused on the area of breast cancer reconstruction. By employing a revolutionary patient-controlled expander, activated by a wireless remote control unit, the sometimes painful process of recovering one's body from cancer can potentially be eased with needle-free technology that is inherently less painful, easy to use, and may allow the patient to proceed to a permanent implant much faster than current standard-of-care allows. At this time, AirXpanders' products are not cleared or approved for sale. AirXpanders is backed by GBS Venture Partners, Heron Capital, Prolog Ventures and Shalon Ventures.
About Oxford Finance Corporation
A subsidiary of Sumitomo Corporation, Oxford is a specialty finance firm providing senior secured loans to public and private life science and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets. In recent years, Oxford has originated over $1.5 billion in loans, with lines of credit ranging from $500 thousand to $40 million. Oxford is headquartered in Alexandria, Virginia, with additional offices in California, Massachusetts and North Carolina. For more information visit www.oxfordfinance.com.