Pharmaceutical company Pacira Pharmaceuticals has agreed to invest up to $25m in US-based surgical reconstruction technology provider Tela Bio.
Pacira will provide an initial $15m and will supply up to $10m in additional funding if Tela meets certain performance targets. The deal will also give it a seat on Tela’s board of directors.
Tela Bio produces a range of reinforced bioscaffolds under the OviTex brand for ventral hernia repair and abdominal wall reconstruction. They have been used in more than 1,000 implantations for hernia patients.
Dave Stack, Pacira’s chairman and CEO, said: “We believe the OviTex platform is a highly innovative and differentiated solution that is positioned to emerge as a leading surgical mesh that synergistically blends the strength of a synthetic with the regenerative properties of a biologic.
“Given the strong commercial overlap in soft tissue procedures between our two organisations, we look forward to identifying ways to further collaborate with Tela Bio over time.”
Tela had previously raised more than $75m in funding, according to regulatory filings. Its existing investors include growth-stage investment firm Signet Healthcare Partners, growth equity firm HighCape Partners and investment firm OrbiMed.