ViewRay, a US-based developer of radiation therapy technology backed by industrial equipment maker Siemens, has raised $26.7m from several existing stakeholders to support a reverse merger with shell company ViewRay Technologies.
Aisling Capital, Fidelity Biosciences, Kearny Venture Partners, Montrose Capital, OrbiMed Advisors and Xeraya Capital purchased a total of 5.3 million shares in the placement.
The funding follows the $50m in debt financing secured by ViewRay from investment firm CRG last month, and supported ViewRay’s flotation on OTC Markets through the reverse merger.
Founded in 2004, ViewRay has developed an MRI-guided radiation therapy system named MRIdian, which produces images of a tumour as it treats the cancer. The technology gained regulatory approval in the US in 2012 and in the EU in November 2014.
ViewRay filed for a $69m initial public offering in February 2015, before reducing the IPO’s size to $64.4m in March and finally postponing the flotation in April. The company has now raised more than $270m in debt and equity altogether.
Siemens participated in ViewRay’s $20m series C round in 2010, as well as a $45m series D round in 2013 that also included OrbiMed, Hercules Technology Growth Capital, Fidelity, Kearny and Aisling.
Chris Raanes, president and CEO of ViewRay, said: “ViewRay’s arrival on the public market and the associated financing in connection with the recent CRG debt funding enable us to expand commercially and drive toward profitability.
“Clinical usage of MRIdian has already demonstrated an exciting new way of visualising and personalising radiation therapy through the use of real-time MRI-guidance.”