Vascular Dynamics said this week that it closed a private placement worth $10.4 million that it plans to use on the clinical program for its MobiusHD device for treating drug-resistant hypertension.
The MobiusHD implant is designed to reshape the carotid sinus to amplify the signals for baroreceptors lining the blood vessel. Implanted percutaneously, it’s designed to stimulate vasodilation.
All of Vascular Dynamics’ major backers participated the round of promissory notes convertible to Series C stock, the company said.
“We continue to be gratified in the confidence our current investor group shows in Vascular Dynamics. The MobiusHD device has provided encouraging data in our European and American trials, and the response that the regulatory agencies have given the company to date reflect what we have believed all along, which is that the MobiusHD system has the potential to save millions of lives threatened by a condition that has no symptoms, but results in millions of deaths each year,” president & CEO Robert Stern said in prepared remarks. “This financing is continued demonstration of that confidence in our technology and a tribute to those who have worked so hard toward bringing it to fruition.”
Vascular Dynamics won CE Mark approval in the European Union for Mobius HD in January 2016. Proceeds from the private placement are earmarked for an ongoing investigational device exemption study in the U.S., ahead of a bid for pre-market approval from the FDA. The federal safety watchdog has the Mountain View, Calif.-based company on the expedited access pathway for its PMA.