St. Jude Medical-backed Nanostim drums up $10M | Wall Street Beat

October 18, 2012 by MassDevice staff

Nanostim, which is backed by St. Jude Medical, raises $10 million for a leadless pacemaker designed to be implanted directly in the heart. Wall Street Beat

Nanostim, the Sunnyvale, Calif.-based company that's developing a leadless pacemaker, raised $10 million in an equity and options deal, according to a regulatory filing.

The stealthy medical device company is working on MRI-compatible, "miniaturized," pacemakers which are designed to be placed inside the heart of a cardiac patient in a percutaneous, catheter-based procedure. The devices are leadless, and therefore aren't connected to the heart muscle via wires, a modification over previous models that the company touts as major safety improvement.

Nanostim is backed by St. Jude Medical (NYSE:STJ), which last year entered a milestone-based deal featuring an exclusive option to acquire.

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Nanostim is also backed by InterWest Partners, US Venture Partners, Emergent Medical Partners and Life Science Angels. Six unnamed investors participated in the most recent round, according to the filing.

"Our leadless pacemakers are designed to be less invasive, safer devices that will simplify the implantation procedure," Nanostim CEO Drew Hoffmann when the deal was announced in May 2011. "These catheter-based devices also have the potential to drive increased market penetration in developing markets because of the greater number of trained interventional cardiologists than device implanters."