Australia- and Bloomington, Minn.-based Saluda said Redmile Group and “one other financial institution” participated in the round. Yesterday the company took out a four-year term loan from Medtronic for an unspecified amount, marking that medtech titan’s third investment in the spinal cord stimulation device maker.
In May 2017, Saluda raised nearly $40 million for its Evoke closed-loop neuromodulation device it’s developing to treat axial back pain. That round was led by a GlaxoSmithKline (NYSE:GSK) venture shop, joined by existing backer Medtronic. Evoke is designed to tailor its therapy to each patient’s “neural fingerprint.”
“This equity financing in combination with our recent debt transaction strategically positions us to fund the final developmental stages of the Evoke SCS system through global commercialization,” CEO John Parker said in prepared remarks. “Evoke has the potential to be the first closed-loop spinal cord stimulation system introduced to the market – which we believe has immense potential for radically improving the way pain is treated. The U.S. pivotal clinical study met all of its pre-specified endpoints, including significant evidence of pain relief. This supports the design of the product, which has the ability to objectively measure in real-time the neurophysiological aspects related to the spinal cord’s response to stimulation.”
Piper Jaffray was financial advisor on the equity round, Saluda said.
Earlier this month Saluda released data from two Evoke studies, including three-month results from a U.S. pivotal study that met all endpoints.