ViewRay has nabbed up to $50 million in debt financing from healthcare investor CRG after canceling a proposed $52 million IPO in April. The cash will go to help commercialize its MRI-guided radiation therapy as well as to refinance existing debt.
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| MRIdian--Courtesy of ViewRay |
The company's imaging and treatment technology MRIdian was cleared in the U.S. in May 2012 and received a CE mark in November 2014. The system offers continuous soft-tissue imaging during MRI-guided radiation therapy. This is intended to better inform clinicians where the radiation dose is being delivered and to enable changes in the treatment to adapt it to the patient anatomy.
"We believe that MRI guidance is the future of treating cancer with radiation, and we are pleased to support ViewRay as the technology leader," said CRG chairman Charles Tate in a statement. "The demonstrated clinical value of the MRIdian System at leading U.S. cancer centers gives us the confidence to invest in ViewRay's business model."
CRG has more than $2 billion under management and included in its portfolio are medical device companies such as orthopedics implant maker Blue Belt Technologies, chronic pain device player Nevro ($NVRO), dialysis machine company Outset Medical, insulin pump maker Tandem Diabetes Care ($TNDM), surgical tools company Ceterix Orthopaedics, disposable insulin pump maker Valeritas and endovascular aortic repair company Trivascular ($TRIV).
On the diagnostics side, it has invested in ophthalmology-focused TearLab, cancer diagnostics players Navidea and Biodesix, kidney diagnostician Astute Medical and autoimmune diagnostics company Exagen.
In 2014, ViewRay had sales of $6.4 million with a net loss of $33.8 million. At Dec. 31, it had 10 signed sales contracts for MRIdian systems in backlog with a total value of $54.7 million. It expects to recognize about 40% to 60% of that as 2015 revenues.
Existing ViewRay investors include Aisling Capital, Beacon Bioventures, OrbiMed Advisors and Kearny Venture Partners.
ViewRay will initially access $30 million of the total financing amount, which is interest-only for three years. It will use part of this to retire $13 million in debt. Access to the remaining $20 million is tied to undisclosed milestones.
"We are pleased to have the confidence and support of CRG, an investment partner renowned for its strategic investments in healthcare," said ViewRay President and CEO Chris Raanes in a statement. "This loan facility provides the funding to support the next stage of commercialization and marks an important step in bringing the benefits of simultaneous MRI guidance and on-table adaptive treatments to radiation oncology professionals and the patients they serve."
- here is the release