Vascular Dynamics said it secured $16.85 million in Series B financing to fund clinical trials for its device to treat drug-resistant hypertension.
Under the agreement, VDI received $8.425 million up front. An additional $8.425 million will be invested when the company reaches certain clinical milestones, according to a press release.
The round was led by HBM Healthcare Investments, which will also take a seat on VDI’s board. Other participants include existing investors Rainbow Medical, the MedFocus Funds and “an undisclosed existing investor with over a billion dollars of assets under management,” according to the release.
VDI is developing a device that helps regulate blood pressure by amplifying signals received by artery baroreceptors. The device, MobiusHD, is intended to be an alternative to drug therapy for patients suffering from resistant hypertension. The company estimates that up to 15% of all patients with high blood pressure suffer from resistant hypertension.
“This financing will allow the company to complete its European and U.S. safety studies and prepare for our pivotal U.S. clinical study. Resistant hypertension affects people all over the world, so we are thrilled to expand our top-tier syndicate to include HBM Healthcare Investments,” VDI CEO Robert Stern said in prepared remarks. “We have made great progress since our Series A financing, including finalizing development of the MobiusHD, the initiation of our FDA-cleared clinical safety trial, our European clinical safety trial, and issuance of broad intellectual property,” Stern added.
Vascular Dynamics was founded in 2008 by Israel-based Rainbow Medical. The company is developing a catheter-delivered carotid sinus implant, MobiusHD, designed to treat drug-resistant hypertension. Last November the company reported raising $10 million.
The medical device maker began U.S. human clinical trials for MobiusHD in September 2013; a European trial is also under way.
Last year technology giant Sony Corp. (TYO:6758) invested $10 million into Rainbow Medical.
