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| The Rosa Brain robotic surgery system |
Medtech S.A. announced a $15 million financing, as the Montpellier, France-based robotic surgery company commercializes its FDA-cleared device for neurosurgery across the world and seeks U.S. approval of its spinal surgery device. The transaction consists of the sale of convertible notes (debt that converts to equity upon the achievement of a milestone) and warrants to purchase common stock to investor Ally Bridge Group, a private equity firm focused on healthcare.
Medtech trades on the NYSE Paris Euronext. It reported a loss of €2.6 ($2.8 million) on revenue of €6.5 million ($7.1 million) during fiscal year 2015.
The company's Rosa robotic surgery system is designed to enable minimally invasive brain and spine surgeries. The Rosa Brain robot was cleared in the U.S. in 2009, where it is installed in about 20 hospitals, according to the company website. In its clearance letter, the FDA describes the device as a computer-assisted surgical device. The computer-controlled electromechanical arm is intended for use by neurosurgeons to guide standard neurosurgical instruments, the letter says.
Medtech says the device can be used for a variety of surgical procedures including biopsies, implantations of electrodes for deep brain stimulation, open surgeries and less invasive keyhole procedures.
It recently touted the sale of three robots in the U.S. and Germany, as well its first sale in Turkey and the creation of distribution agreements in the Czech Republic and Taiwan. Overall, the device has an installed base of 51 units in countries across the world including Spain, Italy, India, China and Canada.
In addition, the company is seeking FDA clearance of the Rosa Spine robot. The device received a CE mark in 2014.
"Medtech S.A., with a proven track record in the field of robotic surgery, has developed truly differentiated robotic products to enable high-precision minimally invasive brain and spine surgeries. The Ally Bridge team has visited leading neuro-surgeons at a number of major medical centers in the US, China and Europe and has been impressed by the very positive feedback from them. Particularly, ROSA Brain is establishing itself as the gold standard for minimally invasive epilepsy surgery around the world. In the meantime, ROSA Spine is creating a new standard for minimally invasive spine surgery," said Frank Yu, Founder and CEO of Ally Bridge Group, in a statement.
Its recent investments include orthopedics players Conventus, biopharmaceutical company Tunitas Therapeutics and contract research organization WuXi Pharma Tech ($WX), according to a CB Insight's venture capital database.
- read the release (PDF)