A group of Cincinnati gastroenterologists have been joined by several business and technology partners to launch a health IT company that develops intraoperative voice-command software to document surgical procedures.
The company, eMerge Health Solutions, received $650,000 in investment commitments, including $250,000 from state-supported venture development group CincyTech.
eMerge is aiming to up that initial investment amount to $850,000, and the company plans to use the cash for operating capital and to further product development, according to a statement from CincyTech.
eMerge says its software will help doctors become more efficient and reduce documentation errors.
The company’s initial target market for its voice-command documentation software is self-contained gastroenterology units within ambulatory surgical centers and hospitals. eMerge estimates that target market to be valued at $250 million to $300 million, according to the statement.
eMerge has installed its system in four locations — three ambulatory surgery centers and Cincinnati’s Jewish Hospital.
Last month, the company hired a CEO, Alex Vidas, who has a background in software engineering and previously worked with imaging firm Pentax Medical, according to the statement.
“We will be offering a first-of-its-kind-product, the ability to document during a procedure using voice command and control,” Vidas said. “This allows the clinician to gain productivity benefits without taking focus away from the patient’s care.”
Here’s a roundup of the latest dealflow and investment news:
- DexCom aims to raise $70 million with stock sale
DexCom Inc. (NSDQ:DXCM), announced the sale of 4.7 million shares of its common stock. The last reported sale price of our common stock as reported by the Nasdaq Global Market on May 6, 2011 was $15.01 per share. The company expects to use the net proceeds from the sale of the shares for working capital and general corporate purposes. Closing of the offering is expected to occur on or about May 10. In addition, the company granted the transaction’s underwriters a 30-day option to purchase up to an additional 705,000 shares of common stock to cover over-allotments, if any.
- InspireMD goes public on OTC market
InspireMD Inc. (OTC:NSPR) , the developer of the MGuard mesh protective stent system, announced today that it has been approved by FINRA to have its stock quoted on the Over-the-Counter Bulletin Board (OTCBB) under the symbol "NSPR". In addition, on March 31, InspireMD concluded a $9.7 million PIPE offering in which (i) it raised approximately $9.0 million of cash and (ii) approximately $0.7 million worth of debentures were converted.
- Connecticut Innovations leads $1 million round for Innovatient Solutions Inc.
Connecticut Innovations, the state’s quasi-public authority responsible for technology investing and innovation development, today announced that it has made an investment of $500,000 in Innovatient Solutions Inc. of Farmington, Conn., through its Seed Investment Fund. CI led the investment round of $1 million, which also involved company founders and angel investors. Innovatient is developing a patient-centered information system aimed at improving communications between hospital care providers and patients, thus enhancing clinical outcomes and patient satisfaction.
- Miromatrix identifies first product, seeks $5 million
Sometimes amazing feats of scientific research get all the attention, but the actual process of creating a company from that research and developing a product is rarely that glitzy. Take the case of Miromatrix Medical Inc., the Eden Prairie, Minn. company trying to become a viable business by commercializing the stunning science of Dr. Doris Taylor, director for the University of Minnesota’s Center for Cardiovascular Repair. In the lab, Taylor’s research team drained the heart of a dead rat of cellular material until only the extracellular matrix or tissue scaffold remained. Then, researchers filled the vacuum of the empty heart shell with cells from new born rats and managed to create a beating animal heart, an extraordinary medical breakthrough, writes MedCity News.
- Elekta raises $200 million through private placement
Elekta (STO:EKTAB) has strengthened its long term loan financing by entering into a private placement agreement with U.S. institutional investors. The transaction amount is $200 million with tenors between seven and twelve years. Bank of America Merrill Lynch has been the placement agent in the transaction.
- Cardiac Network announces reverse stock split
Cardiac Network Inc. (OTC:CNWI.PK) announced that the it will effect a 1-for-750 reverse stock split. The split took effect on the opening of business and trading on May 6. On the effective date, the company’s trading symbol will be changed from "CNWI" to "CNWID" for approximately 20 business days, after which it will revert to CNWI. Upon the effectiveness of the split and as of the effective date, there will be approximately 109,345 shares of the company’s common stock issued and outstanding.
- Awarepoint drums up $14 million
Awarepoint closed a $14 million debt-based financing, according to a pair of recent regulatory filings (here and here), Xconomy reported. Awarepoint last month acquired Charlotte, N.C.-based Patient Care Technology Systems. The company also named a new CEO, Jay Deady, and raised $9 million about six months ago. Awarepoint has previously raised capital from Silicon Valley Bank, Avalon Ventures, Cardinal Partners, JAFCO Ventures, and Venrock, according to the publication. The company makes real-time location system (RTLS) solutions for hospitals.