Mederi Therapeutics Closes Funding of $18.5 Million
Mederi Therapeutics Inc. announced today the closing on $18.5 million, comprised of Series B preferred stock and venture debt. Participating in this round were Acadia Woods Partners, LLC, Respiratory Diagnostics Inc., a subsidiary of Bio-Rad Laboratories, Inc., as well as a group of high net worth equity investors. Venture debt was provided by Horizon Technology Finance. The funds will be used to support and expand on the rapidly growing use of Mederi's Stretta therapy for Gastroesophageal Reflux Disease (GERD) and Secca therapy for Bowel Incontinence.
The overwhelming body of clinical data supporting Stretta's safety, efficacy and durability of effect has led to Mederi's rapid expansion.
"Many device start-up companies launch with large sales forces and deep marketing budgets before gaining traction with clinical data and reimbursement. Mederi has strategically built sales and marketing as we gained such traction," said Will Rutan, CEO of Mederi. "This conservative approach has paid off, resulting in expanding insurance coverage domestically and abroad, significant growth in 2013, and product availability in almost 40 countries on a relatively small amount of investor capital." "We are very pleased to have the support of all of our original investors plus a select new group, as well as the growing support of the medical community in our efforts to mainstream these safe and effective, minimally invasive therapies," continued Rutan.
The Value of a Safe, Effective, Low Cost Option Mederi's radiofrequency treatments provide value to payers, providers and patients by offering safe, effective, durable and low-cost therapies.
Approximately 40 million Americans suffer from GERD, and 30% of those don't fully respond to medications. Stretta therapy for GERD is backed by more than 32 clinical studies showing up to 10 years of safe, durable symptom relief. These funds will allow Mederi to broaden Stretta's reach within the medical and patient communities, as it clearly addresses an unmet need in the treatment of GERD by providing an alternative to lifelong medications or surgery.