Alveolus, a developer of non-vascular stents, is preparing to commercialize its products and will do so with more than $10 million in new financing.
The Charlotte-based company said Thursday morning that it has closed on B round financing “exceeding $10 million.” The funding exceeded the company’s goal, which was to get between $6-8 million.
Alveolus’ stents are used to assist patients who suffer from pulmonary or gastrointestinal obstruction. It received regulatory approval in the United States and from the European Union in March. The company was founded in 2001, has 10 employees, and has raised $6 million in previous financing.
Alveolus has developed a Stent Technology System that a spokesman told Local Tech Wire earlier this year “addresses all the shortcomings of existing technology: stent migration, tumor-in-growth, and unraveling and tissue granulation. We are filling three important gaps. First, lack of dedicated technology that meets both physicians and patient needs. Second, significant training required for clinicians to deploy existing technology. Third, minimal focus on the non-vascular field by large medical device companies.”
The market for stent devices is a lucrative one — more than $1 billion, according to a company spokesman. Alveolus also has in development a removable, self-expanding stent that would not require X-rays. The company owns five patents and is seeking 40 more and is developing other stents for use in the esophagus, colon, duodenum, pancreas, biliary tract and other ducts
Dr. Gerard Silvestri, a well know expert on lung cancer who has written widely on the subject, co-founded the company along with businessman Eric Mangiardi in 2001.
MDS Capital of Toronto led the round. Also contributing were FCA Venture Partners III, SBIC, and MB Venture Partners, both of Tennessee, Healthcare Capital Partners of
Atlanta, and Matignon Technologies FCPR of Paris, France.
Alveolus also added new members to its board of directors, including David Crane, a former CEO of Charlotte-based MedCath.
“Moving forward, we are well positioned to implement our company objectives of releasing the next-generation of non-vascular technologies and improving the quality of life of those patients suffering from malignant and benign diseases,” Mangiardi, the Alveolus president and CEO, said in a statement.
Alveolus said the money would be used to help launch its tracheobronchial stent technology plus other products.
“Alveolus has developed products that are producing meaningful improvements in the quality of life of lung cancer patients today,” said Anthony Natale, MD of MDS Capital, who joined the Alveolus board. “The continued efforts of the company will accelerate the growth of the emerging specialties of interventional pulmonology and interventional gastroenterology and have a significant positive impact on patients with difficult to treat airway and (gastrointestinal) obstructions. MDS Capital is excited to lead the investment that will provide the necessary resources to the outstanding team that has conceived and developed this technology. We are committed to working alongside management to establish Alveolus as a leader in the field of minimally invasive medical therapy.”
Also joining the board is Stuart McWhorter of Clayton Associates and Crane. They are independent directors.
Alveolus’ stents are used to assist patients who suffer from pulmonary or gastrointestinal obstruction. The company was founded in 2001, has 10 employees, and has raised $6 million in previous financing.