|Aerocrine secured $50 million in financing to market the Niox Mino.--Courtesy of Aerocrine|
Sweden's Aerocrine has secured $50 million in combined debt and equity financing, money the company will use to market its devices for asthma diagnostics.
OrbiMed and Novo are ponying up most of the cash, made up of $35 million in debt financing and the remaining $15 million in equity shares, and Aerocrine said the money will help it commercialize Niox Mino, a hand-held device for asthma management. The tech won FDA clearance in 2008, and Aerocrine has been expanding its market share around the world ever since, winning approvals in Australia, Japan, Canada and elsewhere.
Now, the company is focused on locking down reimbursement for the device on a state-by-state basis, and the novel debt-equity combo is the ideal way to expand Aerocrine's commercialization heft, CEO Scott Myers said.
"Aerocrine has worked closely with OrbiMed over the last several months to craft a financing structure that funds the company through its next stages of growth and towards profitability," Myers said in a statement.
The money will also help Aerocrine develop its pipeline products, the company said, including a next-generation Niox.
OrbiMed is responsible for $25 million of the 7-year loan and $5 million of the equity sale, while Novo kicked in $10 million in debt.
"Aerocrine has made substantial progress with the commercialization of Niox Mino and we look forward to working with Scott and his team to help the company achieve its full potential," OrbiMed Managing Director Matthew Rizzo said in a statement.
- here's the announcement