Israeli mini heart pump developer Magenta Medical Today announced the completion of a $105 million funding round led by Novo Holdings with new investors Viking Global Investors and RA Capital Management, and existing investors OrbiMed, New Enterprise Associates (NEA), JVC Investment Partners, and ALIVE – Israel HealthTech Fund also participating in the round.
This is Magenta’s fifth funding round, having raised $55 million in its last funding round last year. With offices and labs in Kadima Zorran, Magenta has now raised over $200 million.
The company said the funding will be used to advance its clinical programs in the United States in multiple indications for mechanical circulatory support (MCS) and to obtain FDA approval to market the Elevate mini-heart pump system in patients undergoing high-risk percutaneous coronary interventions (HR-PCI).
“Since the last funding round, we have successfully completed the feasibility trial,” Dr. David Israeli, CEO of Magenta Medical, told Globes. “We have a much larger trial ahead of us that will be the infrastructure for the approval and sale of our product. This trial requires resources as well as expanding the company in the US, so we have created the conditions that have convinced investors that there is good feasibility as well as allowing us the activity horizon that the company needs in the coming years.”
The company successfully completed its first clinical trials at leading centers in the United States last year, and presented its results at several international conferences. The company is now preparing to conduct its advanced clinical trial in order to obtain approval from the US Food and Drug Administration to market the drug.
Magenta Medical was founded in 2012 by experienced entrepreneurs Prof. Ehud Schwamenthal and Dr. Yossi Tova, who previously founded heart valve development company Ventor, which was sold to Medtronic in 2009 for $350 million.
Initially, the company focused on developing a kidney-designed pump to treat patients with acute heart failure. However, Magenta decided to change direction because it understood that the time it would take to reach the final result, as well as obtain the required regulatory approvals, would be longer than expected. Moreover, the kidney-designed pump was the first of its kind in the world, making it difficult for the medical device market to adopt it. The existence of a similar product would have further undermined its economic value.
Related Articles
Heart Pump Company Magenta Medical Raises $55 Million
“We took the company’s core technology, which is the mini pump, and decided to target the heart,” Dr. Israeli told Globes. “We came to the conclusion that the ability to bring such a product to the market was closer and more urgent.”
The company’s current product, Elevate, is a miniature blood pump that, when folded, can be inserted into arteries through minimally invasive surgery via the groin. Inside the heart, the pump unfolds and becomes a small, powerful device. The device can then be inserted into the body through a skin procedure, with relatively low risk.
The purpose of the pump, among other things, is to provide support during acute events of decreased heart function, in cases of low blood pressure and disturbance of blood flow to vital organs.
According to Magenta, mechanical cardiac support medical equipment is a high growth market.
This article was published in Globes, Israeli Business News – en.globes.co.il – on July 23, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
