CVRx, Inc., a private medical device company with a novel technology that treats patients suffering from chronic heart failure and resistant hypertension, announced today that it raised $50 million to close its latest round of equity financing. Proceeds from the financing will be used to support commercialization of the BAROSTIM NEO in the United States.
HF affects 6.5 million people in the US.1 It is associated with poor life expectancy, frequent heart failure hospitalizations, poor quality of life and substantial limitation in exercise capacity. The BAROSTIM NEO is designed to treat these patients by electrically activating the baroreflex, the body's natural mechanism to regulate cardiovascular function. The BAROSTIM NEO device is the world's first neuromodulation device approved for heart failure patients. It has received the sought-after "Breakthrough Device" designation by the United States Food and Drug Administration ("FDA"), and is the first device approved by FDA to use the power of the brain and the nervous system to improve the symptoms of patients with HFrEF.
The financing round was co-led by new investors Strategic Healthcare Investment Partners ("S.H.I.P.") and Vensana Capital, with participation from other new investors, Hatteras Venture Partners and Venrock Healthcare Capital Partners. Existing investors Johnson & Johnson Innovation, New Enterprise Associates, Gilde Healthcare, and Action Potential Venture Capital also participated in this financing round.
"It is a great vote of confidence in our product and mission that we were able to close this oversubscribed financing round amid such volatile market conditions and general uncertainty," said Nadim Yared, President and CEO of CVRx. "We are thankful for the support of our new investors as well as our existing investor base, and look forward to utilizing this capital to drive the expansion of our footprint in the US market, and bring our BAROSTIM NEO system to HF and hypertension patients in need."
S.H.I.P. General Partner, Mudit K. Jain, PhD., said, "CVRx is leveraging valuable clinical experience to accelerate the commercialization of its therapy. Brad Vale and I established S.H.I.P. with a focus to invest in medical technology companies that target large unmet clinical needs and can significantly impact human life. We believe CVRx is at the top of the list for these criteria."
"CVRx is a pioneer in the field of neuromodulation for cardiovascular diseases. The CVRx team has developed a unique therapy with strong clinical evidence, and we are excited to support the launch of BAROSTIM NEO in the US and beyond," added Kirk Nielsen, General Partner from Vensana Capital.
As part of this financing, Mudit K. Jain, PhD., and Kirk Nielsen will join the CVRx Board of Directors.
About BAROSTIM NEO
BAROSTIM NEO uses CVRx-patented technology, designed to send electrical pulses to baroreceptors located in the wall of the carotid artery, to deliver BAROSTIM THERAPY™. The therapy is designed to restore balance to the autonomic nervous system and thereby improve the symptoms of HF. The BAROSTIM NEO is approved by FDA for HF in the US, and has received the CE Marking for HF and resistant hypertension in the European Economic Area.
About CVRx, Inc.
CVRx is a leader in innovative technologies that address the unmet needs in cardiovascular diseases with safe and effective therapies. Headquartered near Minneapolis, Minn., CVRx is dedicated to improving patient outcomes, quality of life and overall cardiovascular health via novel baroreceptor neuromodulation therapies. Learn more at www.cvrx.com.
