Medtech Fundraising Wrap Up ?? & Market Data, 12.23.22

Welcome to the Medtech Fundraising Wrap-Up and Market Data Recap ??

We’ll cover top fundraising news from the past few weeks and dive into key markets — from headlines to hot deals and everything in between.

December Highlights ????

December has been HOT, with medtech startups raising approximately $491 million in funding in the weeks of 12/5 and 12/12, in addition to other undisclosed deals announced throughout the month.

Total fundraising increased significantly from deals tracked in November, where approximately $275 million was raised.

The largest raises for the month are attributable to Histosonics, Synchron and Third Pole Therapeutics.

→ Week of 11/21 - $74.7M

→ Week of 11/28 - $59.6M

→ Week of 12/5 - $224.9M ??

→ Week of 12/12 - $266.9M ??

? HistoSonics, Inc.

Histosonics raised $100M between two deals – an $85M financing round led by J&J Innovation and a $15M debt facility expansion from Signature Bank.

The company announced that the financing will be used to support additional clinical trials, commercialization endeavors, and expanded application development for its Edison system. The Edison system is a non-invasive platform that features proprietary sonic beam (ultrasound) therapy to perform histotripsy – a novel means to liquify tumors and soft tissue at sub-cellular levels

? Synchron

While Histosonics closed the most funding, it was brain-computer interface (BCI) developer Synchron that caught the public eye with a $75M investment lead by ARCH Venture Partners, with contributions from the investment firms of Jeff Bezos and Bill Gates.

Synchron’s Switch BCI is implanted into the blood vessel on the surface of the motor cortex, where the device detects and transmits signals from the brain to devices.?The company has been regarded as a notable competitor to Elon Musk’s own BCI company, Neuralink.

? Third Pole Therapeutics

Third Pole Therapeutics announced a $32M equity investment from a major medical device innovator to support the commercialization of their eNOcare device.

Their portable inhaled nitric oxide (iNO) device is a tankless NO system for patients with pulmonary fibrosis and severe COPD. Third Pole’s technology addresses the limitations of traditional iNO devices by creating on-demand NO using only electricity and air.?

Market Data You May Have Missed ??

Global Hemodialysis Device Market.

Hemodialysis is an essential treatment for people with acute or chronic kidney failure to remove toxic waste and excess fluid from the blood. It's still the most popular treatment for kidney failure, or end-stage renal disease (ESRD). 78% of these patients receive hemodialysis.

According to our recently published market data:

→ Hemodialysis device sales were $16.7 Bn in 2021

→ Sales are projected to increase to $20.9 Bn by 2026

→ The market is growing at a CAGR of 4.6%

The prevalence of ESRD is increasing, both in the US where there are over 700,000 adults with ESRD and globally where the?World Health Organization ?estimates that millions are living with ESRD.

Many factors are contributing to the increase in ESRD, including the rise in diabetes and high blood pressure among the growing elderly population.

Major market players include?Fresenius Medical Care ,?Baxter International Inc. , and?Nipro Medical Corporation , which have locked in the capital equipment and consumables for locations that offer dialysis regularly.

However, innovation may make the future of dialysis portable.

There are multiple startups working to enable freedom from routine hemodialysis, including:

???Diality

???Nephrodite

???Nextkidney

Another major opportunity for innovation is in shifting patients from in-center to home dialysis, which can improve patient outcomes and reduce costs.

IKONA Health is a startup leading this movement. By using virtual reality and analytics, their platform drastically increases learning and confidence for patients, providers, and care teams to enable the shift to at-home care.

Benign Prostatic Hyperplasia (BPH) Procedure Volumes.

BPH procedures are intended to provide relief from symptoms, usually after non-surgical options (drugs, pharmaceuticals) fail.

The most common surgical treatment for BPH is transurethral resection of the prostate (TURP), where excess prostate tissue is removed using a resectoscope. Other options include laser prostatectomy, energy-based ablation, and non-thermal hydroablation. In some cases, a device may be implanted to alleviate symptoms, like?Teleflex ’s UroLift.

In South Korea specifically:

→ 22,440 BPH procedures were performed in 2021?

→ Volume is projected to increase to 28,690 by 2026

→ Increasing at a CAGR of 4.3%

With more men aging, hormonal changes can stimulate the growth of the prostate resulting in BPH. Despite many drugs to manage BPH, inadequate relief and side effects are still prompting many to explore surgery.?

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Till next time! ????