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The Healthcare Investor

Insights on Issues & Trends that Impact Investments in Healthcare & Life Science Businesses

Healthcare & Life Sciences Private Equity Deal Tracker: Healthsense Secures $10 Million in Financing

Posted in Healthcare Services Investing

Healthsense has announced it raised $10 million in financing.

Healthsense, headquartered in Mendota Heights, Minn., is a provider of technology-enabled care solutions for the senior care continuum, including remote monitoring, emergency response and wellness management solutions.

The financing round was led by Mansa Capital. Previous investors Merck Global Health Innovation Fund and Radius Ventures also participated in the round.

Healthsense indicated the new capital will support the company’s expansion into managed care and other healthcare sectors.

HealthQuest Capital Raises $110 Million for Debut Fund

Posted in Healthcare Services Investing

HealthQuest Capital has announced it has raised $110 million for its debut fund.

HealthQuest Capital (HQC) is a Menlo Park, Calif.-based fund sponsored by Sofinnova Ventures.

HQC indicated it will focus investments in the medical device, diagnostics, patient care products, consumer health/OTC and healthcare IT fields, with a primary focus on commercial stage investments, providing capital towards growing revenues and scaling existing businesses in promising sectors.

HQC’s initial portfolio includes Vestagen, First Aid Shot Therapy and Castle Biosciences.

Castle Biosciences Secures $11.8 Million in Financing

Posted in Healthcare Services Investing

Castle Biosciences has announced (pdf) it raised $11.8 million in financing.

Castle Biosciences, headquartered in Friendswood, Texas, is a cancer-focused molecular diagnostics company which currently offers prognostic tests for patients with cancers including uveal and cutaneous melanoma, esophageal, thymoma and brain cancers as well as malignant pleural mesothelioma.

The financing round was led by new investor HealthQuest Capital. Participation also included current Castle Biosciences’ investors Mountain Group Capital and Affiliates, Longfellow Venture Partners and others.

Castle Biosciences indicated the funds would be used to expand clinical availability of its portfolio cancer diagnostic tests, including DecisionDx-Melanoma, its test to determine metastatic risk in patients with melanoma.

Healthcare & Life Sciences Private Equity Deal Tracker: Andrew Alliance Secures Series B Financing

Posted in Life Sciences Investing

Andrew Alliance has announced the closing of a series B financing round.

Andrew Alliance, which is based in Switzerland and will be opening an office in Boston, is a developer of life science robotics. In January 2013, Andrew Alliance introduced Andrew, a co-worker robot designed to assist scientists by taking over the manipulation of commercial laboratory pipettes.

Funding for the round came from Omega Funds, which specializes in late-stage life science investments.

Andrew Alliance indicated the funding would go toward expanding the reach of its robots through new developments and the establishment of commercial operations in the U.S. market.

Healthcare & Life Sciences Private Equity Deal Tracker: Epic Sciences Secures $30 Million in Financing

Posted in Healthcare Services Investing

Epic Sciences has announced it raised $30 million in financing.

Epic Sciences, headquartered in San Diego, Calif., is a biotech company developing diagnostic tests to molecularly characterize circulating tumor cells (CTC) in the blood.

The $30 million series C preferred stock financing included new investors RusnanoMedInvest  and Arcus Ventures, existing investors Domain Associates, Roche Venture Fund and Pfizer Venture Investments, and undisclosed individual investors.

Epic indicated the proceeds of the financing would go toward commercializing its circulating rare cell analysis platform with special focus on developing products and services to detect CTC in cancer.

Healthcare & Life Sciences Private Equity Deal Tracker: DICOM Grid Secures $6 Million in Financing

Posted in Healthcare Services Investing

DICOM Grid has announced it raised $6 million in financing.

DICOM Grid, headquartered in Phoenix, Ariz., is a healthcare IT company that has made a cloud-based platform for medical image management and exchange.

The funding round was backed by Canaan Partners, CHL Medical Partners, Mayo Clinic and several individual investors.

DICOM said the funding will be used for product development and to open up additional strategic integration opportunities with EHR and RIS providers.

Healthcare & Life Sciences Private Equity Deal Tracker: CAS Medical Systems Secures $10 Million Loan Agreement

Posted in Healthcare Services Investing

CAS Medical Systems (CASMED) announced in late June that it entered into a $10 million loan agreement with General Electric Capital Corp.

CASMED, headquartered in Branford, Conn., is a developer and manufacturer of non-invasive vital signs monitoring technologies.

Under the terms of the loan agreement, General Electric Capital Corp. is providing CASMED with a secured term loan of $7.5 million and a revolving line of credit up to $2.5 million.

Healthcare & Life Sciences Private Equity Deal Tracker: Amedica Secures $26 Million in Financing

Posted in Healthcare Services Investing

Amedica Corp. has announced it secured up to $26 million in financing.

Amedica, headquartered in Salt Lake City, is a spinal and orthopedic implant and instrument company focused on silicon nitride ceramic technologies.

The funding consists of a $20 million debt financing with Hercules Technology Growth Capital and a private placement to MG Partners II, an affiliate of Magna, of 6% senior convertible notes in an aggregate principal amount of up to $6 million.

Amedica indicated that approximately $15.2 million of the financing proceeds will be used to retire senior secured credit facility with General Electric Capital Corp. The balance will go toward further commercialization and development of products and general corporate purposes.

Healthcare & Life Sciences Private Equity Deal Tracker: Dune Medical Devices Secures $21 Million in Financing

Posted in Healthcare Services Investing

Dune Medical Devices has announced it completed the first of a two-stage $21 million equity financing.

The initial closing was completed for $14 million. A second tranche of $7 million is expected be completed by October 2014.

Dune Medical Devices, with offices in Westborough, Mass., and Israel, develops and commercializes intraoperative, real-time, cancer detection devices, including the MarginProbe System.

Investors are both previous and new investors. They include the Kraft Group and Canepa Advanced Healthcare Fund.

Dune Medical indicated the financing will go toward expanding the sales and marketing efforts for the MarginProbe System.

What does Fresenius’s Investment of $600M in Sound Inpatient Physicians Mean?

Posted in Healthcare Services Investing

Fresenius Medical Care has announced it has entered into an agreement to invest approximately $600 million in Sound Inpatient Physicians.

Fresenius Medical Care, which has its North American headquarters in Waltham, Mass., specializes in the production of medical supplies that facilitate or aid renal dialysis.

Sound Inpatient Physicians, headquartered in Tacoma, Wash., is a hospitalist organization with more than 1,000 physician partners providing care in over 100 hospitals and post-acute care centers across the U.S.

Under the terms of the agreement, Fresenius would become majority shareholder as part of a recapitalization of Sound, alongside existing investor TowerBrook Capital Partners and Sound’s senior leadership team.

Fresenius Medical Care also announced it has acquired MedSpring Urgent Care Centers. MedSpring, headquartered in Austin, Texas, operates 14 urgent care centers in Illinois and Texas.

Considering Fresenius and DaVita are the two biggest dialysis companies in the world and are in frequent head-to-head competition both globally and locally for individual physician/clinic talent, the moves here by Fresenius — which has historically been a bit slower to diversify and look at unique opportunities — is likely in response to the DaVita purchase of HealthCare Partners in late 2012.

DaVita acquired HealthCare Partners, which managed medical groups and physician networks in three states, for $4.4 billion. With the acquisition, DaVita became known as DaVita HealthCare Partners.

As we noted in a 2012 column, DaVita’s acquisition was representative of the trend of dialysis providers expanding their services to renal patients. With news of Fresenius’s acquisitions, it is apparent this trend continues.