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Clinical-stage company raises $9.5M in funding
A clinical-stage company in the region has completed a $9.5 million Series B Preferred Stock financing to develop a device for the treatment of hypertension and other diseases.
Kalamazoo-based Ablative Solutions, which is privately held and also has offices in Menlo Park, Calif., will use the financing to fund its device for renal denervation — or depriving area near the renal artery its nerve supply.
Ablative Solutions' device, the Peregrine System, delivers a chemical treatment to the outer layer of the renal artery, where the sympathetic nerves reside, with precision.
The financing includes the conversion of bridge financing completed in 2013.
Ablative Solutions also completed $5.3 million in Series A financing in the summer of 2012.
The Series B financing round was led by BioStar Ventures and Michigan Accelerator Fund and included participation by the Ablative Solutions founders and multiple angel investors.
"The company has made tremendous progress in the two years since its inception with a unique approach to renal denervation and has done so with great capital efficiency," said Dale Grogan of Michigan Accelerator Fund, who was elected to the company's board of directors upon closing of the financing.
The streamlined procedure, which the company calls PeriVascular Renal Denervation, has demonstrated highly effective denervation in pre-clinical studies, with no collateral damage to the artery.
"We are pleased with the strong vote of confidence from our investors supporting our pursuit of this novel non-energy approach to denervation," said Dr. Tim Fischell, Ablative Solutions CEO. "We believe that the lessons from clinical experience to date will advance the field, deepening the understanding of the science behind neuromodulation, and, in the end, patients will benefit from improvements in technology and technique."
Ablative Solutions is now engaged in early clinical evaluations.
The Ablative team believes that there is value in interrupting signals from overactive sympathetic nerves, based on extensive favorable clinical data from open surgical denervation, as well as from early endovascular renal denervation experience.
The company is confident that by combining the right nerve pathway interruption with a selection of carefully targeted patients, renal denervation will deliver clinical value to patients with drug-refractory hypertension.
"ASI's technology is unique, and we believe will overcome some of the shortcomings that have been seen recently in RF-based renal denervation devices," said Dr. Steven Almany, medical director at BioStar Ventures and an interventional cardiologist at Beaumont Health Systems.