
Celleration Inc. raised $8 million in a Series E round toward more sales and marketing resources for its mist therapy wound healing product.
The Eden Prairie, Minn.-based company attracted a new Minneapolis-based investor, Sightline Partners, for this latest round, despite a dismal venture capital climate, CEO Mark Wagner said in a phone interview.
Past investors such as Affinity Capital, Venture Investors, Triathlon Medical Ventures, Baird Venture Partners and New Science Ventures also contributed, leaving $112,996 of the equity-based round unsold, according to a filing with the Securities & Exchange Commission.

“I’m pleased that our investors have expressed their confidence in our team as well as the opportunity for mist therapy,” Wagner said. “We had a very good 2010, and we’re looking to drive our revenue in 2011.”
According to a 2009 Forbes report, Celleration had $10 million in sales in 2008.
Celleration’s product, Mist Therapy System, was approved by the Food & Drug Administration in 2005. The system consists of an ultrasound generator and transducer, to which is attached a disposable saline applicator. The transducer delivers ultrasound waves through a saline mist applied to a wound. The mist discourages bacteria and carries the low-frequency sound waves, which stimulate cell growth and regeneration. Clinical studies have shown benefit, particularly for chronic wounds such as diabetic foot ulcers.
To date, Celleration’s product has treated more than 30,000 patients, according to the company’s web site. Wagner said Celleration also will this year begin pursuing sales in the United Kingdom through a new distribution partner, H + R Health Care. The product received CE Mark approval in 2007.
Celleration has met resistance from insurers for reimbursement. Its patients are primarily covered by Medicare. Six of 10 Medicare Administrative Contractors (MAC) now reimburse at a rate of $104, Wagner said. He declined to say what Celleration charges for the product, but Forbes reported in 2009 that the company then charged $75 per disposable portion of the device.