US-based medical device manufacturer NxThera closed a $40m series D round led by medical device maker Boston Scientific yesterday.
The round also featured NxThera’s existing investors, including healthcare advisory company GDN Holdings, investment firm Ally Bridge Group, and venture capital firms Aberdare Ventures and Arboretum Ventures.
Financial services provider East West Bank supplied an undisclosed amount of debt financing as part of the series D.
Founded in 2008, NxThera has developed technology that creates sterile water vapour to treat endourological conditions. The company is conducting research and development into applications for the treatment of prostate and kidney cancers.
The cash injection will support an increased sales push of NxThera’s lead product, Rezūm System, both in the US and internationally. Rezūm received regulatory approval in the US in August 2015 and is aimed at benign prostatic hyperlapsia, a condition characterised by an enlarged prostate.
Boston Scientific’s investment follows its acquisition of the men’s health and prostate health divisions of medical device company American Medical Systems (AMS) in August 2015. AMS had led a $9m extension to NxThera’s series B round in October 2011, helping to close the round at $21.6m.
The extension also featured Mitsui Global Investment, a corporate venturing subsidiary of Japan-based conglomerate Mitsui, Premier Asia Capital, Prolog Ventures, Alafi Capital and assorted angel investors.
AMS had previously led the first tranche of the series B round in March 2011 with participation from GDN, Arboretum, and Aberdare. Arboretum and Aberdare invested a total of $7.2m in NxThera’s series A and B rounds in 2008 and 2009.
NxThera secured at least $25m in a February 2014 series C round, though it did not name the investors.