Earlier this month, Flowonix Medical announced it had obtained debt and equity financing totaling approximately $40 million.
Flowonix, headquartered in Mt. Olive, N.J., is focused on providing implantable drug delivery solutions and has developed an implantable drug pump designed to deliver therapeutic drugs into the spine to relieve a variety of chronic disorders.
The transaction includes $20 million in equity investment, led by a PE fund managed by Élevage Capital. The investment also included participation from Clarus Ventures and other existing investors, as well as new investors including Hercules Technology Growth Capital. The fundraising also included $15 million in venture term debt financing and an accounts receivable line credit of up to $5 million from Hercules.
Flowonix indicated it expects to use the proceeds from the financing round to invest in sales and marketing infrastructure, new product development and to support growth of its Prometra Programmable Infusion Pump System in the chronic pain market.