AAA Hyalex extricates $33m in series A

Hyalex extricates $33m in series A

Hyalex Orthopaedics, a US-based cartilage replacement material spinout of Stanford University, increased its series A round from $16m to $33m yesterday.

The additional funding came from investors including DSM Venturing, the open innovation arm of health, nutrition and material product supplier DSM, and medical device-focused venture capital firm Strategic Health Investment Partners.

The new funding followed an initial $16m series A tranche in June 2017 led by VC firm Canaan Partners and backed by Johnson & Johnson Innovation – JJDC, the innovation and corporate venturing arm of medical group Johnson & Johnson, and spinout-focused investment firm Osage University Partners.

Founded in 2016, Hyalex is working on a synthetic biomaterial that emulates the structure and function of the hyaline cartilage, which lines articulating joints such as the shoulder, knee and ankle.

The approach could potentially mean arthritic cartilage could be replaced while sparing healthy bone, in contrast to conventional prosthetic implants which necessitate the replacement of entire joints.

The series A funding will support continued development of Hyalex’s synthetic biomaterial as the spinout aims to bring its technology into clinical testing.

Brad Vale, co-founder of Strategic Healthcare Investment Partners, will join the company’s board of directors, which already includes Renee Ryan, vice-president of venture investments for Johnson & Johnson Innovation – JJDC, and Bill Harrington, of Osage University Partners.

Mira Sahney, Hyalex’s president and chief executive, said: “We are pleased by the enthusiastic response from leading investors and their shared vision to address the enormous patient problem of cartilage injury and disease.”

This article originally appeared on our sister site, Global University Venturing.

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