~ Heart data transmitted to the clinician for timely heart failure monitoring and management ~
Cardiovascular disease remains the leading cause of death in the US, accounting for nearly 840,000 deaths annually, or about one-third of all deaths according to the latest statistics from the American Heart Association. About 9% of these deaths are attributed to heart failure, which is defined as the condition in which the heart is unable to pump blood effectively throughout the entire body. About 26 million people worldwide were estimated to be living with heart failure, according to a widely cited 2014 study conducted globally by Piotr Ponikowski, MD, PhD, Head of the Department of Heart Diseases, Wroclaw Medical University in Poland, et al. The latest statistics project the number of people diagnosed with heart failure to increase 46% by 2030, which would translate to over 8 million people in the US. According to a another key study in 2013 by Paul A. Heidenreich, MD, of the Division of Cardiology at Stanford University School of Medicine, et al., the total medical costs in the US attributable to heart failure are estimated to increase from $31 billion in 2012 to $70 billion in 2030.
Lisle, Illinois, based Endotronix is developing an integrated platform to provide comprehensive, reimbursable health management tools for patients suffering from chronic heart failure. The company announced this morning that it has raised $45 million in a Series D financing round led by LSP with participation by Aperture Venture Partners, BioVentures Investors, Lumira Ventures, OSF Ventures, Seroba Life Sciences, SV Health Investors, Wanxiang Healthcare Investments and one “unnamed corporate strategic investor.”
The Cordella Heart Failure System consists of a remote patient management software solution coupled with an integrated, next generation implantable pulmonary artery sensor to streamline heart failure care management and provide early detection of worsening heart failure. The system is designed to address inefficiencies in heart failure management and promote guideline-based therapy so physicians can improve patient care and reduce re-hospitalizations with effective and scalable remote patient management. “With our device in place, a clinician can see how the patient is doing at home before the heart fails, then adjust medication,” said Endotronix CEO Harry Rowland, PhD, in an article written by Cassandra West for Crain’s Chicago Business in July 2018.
In the press release today announcing the Series D round, Dr. Rowland said, “We are thrilled with the world-class leadership and support of LSP and our existing investor group as we launch into the next phase of our company. This financing accelerates our U.S. and E.U. launch of the Cordella System and supports our upcoming landmark randomized, controlled clinical study, PROACTIVE-HF, to demonstrate the safety and effectiveness of proactive heart failure management.”
IPO on the horizon?
If we may speculate for a moment, Endotronix certainly appears to be paving what may be a path to the public markets, and it would not surprise us if investment bankers were already flying into O’Hare to make the short drive southwest to Lisle. This latest Series D funding brings the total equity capital raised to $95 million for Endotronix, in addition to a $12 term loan agreement Silicon Valley Bank into which it entered in 2017.
In April 2018, Endotronix brought on John Flavin, an experienced life sciences executive and entrepreneur, as CFO. Mr. Flavin most recently led the Polsky Center for Entrepreneurship and Innovation at the University of Chicago, where he founded the Polsky Exchange start-up incubator and helped raise over $135 million in philanthropic and corporate funding to support technology development, start-ups, and commercialization. Prior to that he held President and CFO roles at Advanced Life Sciences and MediChem Life Sciences where he oversaw corporate development and raised over $220 million in public and private capital, including two successful IPOs.
In January 2018, Endotronix announced the successful first-in-human implantation of its Cordella Pulmonary Artery Pressure Sensor and initiation of the SIRONA first-in-human clinical trial. Clinical studies have shown that regular pulmonary artery pressure monitoring can provide earlier detection than other modalities of worsening heart failure. Additionally, regular monitoring was found to decrease heart failure related hospitalizations by 37%, and reduce mortality by 57% for patients with heart failure with a reduced ejection fraction (HFrEF).
Dr. Rowland has led the company’s operations, strategy, and technology development since inception in 2007. He has been active in research and development of micro and nanotechnology fabrication methods for 15 years, including invited research at Sandia National Laboratories, New Mexico and Trinity College, Ireland. Dr. Rowland is an inventor on 10 issued patents and several pending applications.
“Endotronix is on the cusp of transforming heart failure management,” said Fouad Azzam, PhD, General Partner at LSP and newest board member of Endotronix. “Their scalable Cordella System enables streamlined and timely flow of clinical-level information that can improve patient outcomes and supports sustainable care delivery revenue for healthcare providers. We’re excited to be part of the team to drive this transformation in the heart failure market.”
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