US-based bio-medical device company CryoLife has invested $3.5m in US-based heart surgery company ValveXchange, receiving about 19% equity in return.
As part of the deal, CryoLife will also make up to $2m in additional debt funding available to ValveXchange through a revolving credit facility. The financing will support the initial procedures involving ValveXchange’s Vitality exchangeable heart valve system being used for human subjects.
Founded in 1984, CryoLife develops implantable biological devices, surgical adhesives and biomaterials for cardiac and vascular procedures, and in May announced its acquisition of Cardiogenesis, a medical device company also specialising in the treatment of heart disease.
Steven Anderson, chief executive of CryoLife, said: "The ValveXchange technology is an extremely compelling next generation heart valve approach. Its unique replaceable bioprosthetic leaflet design has the potential to eliminate repeat open heart surgeries from the long-term wear complications associated with current biological valves. This investment is well in-line with our strategy to focus on innovative products that could further leverage our direct sales force and their relationships with cardiac surgeons."
The prior funding of ValveXchange has come chiefly from grants received from organisations such as the National Institutes of Health, which awarded $1.6m in July 2008 and $1.3m in August 2010, as part of its Small Business Innovation Research program.