Veran Medical Technologies, Inc., a privately held medical device company and leader in interventional pulmonology technologies, announced today that it has secured a new credit facility from Madryn Asset Management. The financing provides Veran with up to $35 million in aggregate proceeds, which provides increased financial and structural flexibility to support Veran’s continued investment into its strategic growth initiatives focused on improving the diagnosis and treatment of lung cancer.
“We are excited to partner with Madryn and its team of experienced healthcare investment professionals to support our continued advancement of interventional technologies for the lung cancer market,” said Veran Medical CEO Jason Pesterfield. “This financing provides the resources and flexibility that will allow us to continue our commercial expansion and technological innovation in order to help physicians diagnose and treat lung cancer earlier and to ultimately save lives.”
Madryn’s financing follows a strategic investment from BTG which joined Veran Medical’s existing investors including Versant Ventures and River Cities Capital Funds.
“We believe that Veran’s technologies provide a precision navigational platform that enhances and expands physicians’ access to difficult-to-reach peripheral lung nodules,” said Peter Faroni, Co-Founder and Partner of Madryn. “There is significant unmet need in the diagnosis and treatment of lung cancer and we believe that expanding access to innovative interventional technologies such as Veran’s will result in faster diagnoses, improved patient outcomes, and lower costs to the healthcare system. We are thrilled to be joining Veran’s existing partners at this exciting time and look forward to supporting the company’s creation of value over the long term.”
Veran’s next-generation SPiN Thoracic Navigation System™ offers an industry-leading, precision, thoracic guidance platform that allows pulmonologists and other lung specialists to seamlessly transition between a navigated, endobronchial approach and a navigated, transthoracic approach utilizing SPiN Perc™, to help physicians diagnose lung cancer earlier. A published clinical study utilizing a multi-modality approach, including Veran’s SPiN System™ and SPiN Perc™, have demonstrated a 92% diagnostic yield.
Veran’s SPiN Thoracic Navigation System™ is the most versatile system on the market and is also utilized by thoracic surgeons for localization and marking of lung nodules in the operating room immediately prior to resection. In addition, Veran’s SPiN IR™ software application enables interventional radiologists to utilize the navigation platform for lung, liver, kidney, and other thoracic anatomy.
Lung cancer remains the number one cancer killer worldwide. In the U.S. alone, 94 million current or former smokers remain at elevated risk for lung cancer and more than 8 million people currently meet the clinical criteria for lung cancer screening. When suspicious lesions are discovered, physicians and patients need diagnostic answers to inform treatment decisions. Mounting clinical data suggests that a large percentage of the hundreds of thousands of bronchoscopies performed every year on suspected lung cancer patients are non-diagnostic—delaying potential lifesaving therapy and often resulting in invasive, expensive, and potentially unnecessary surgical procedures.