Spirox has attracted a lineup of deep-pocketed VCs in its $45 million Series C round. Private equity firm KKR led the round, with participation from new investor HealthQuest Capital in addition to existing shareholders Aisling Capital, Aperture Venture Partners and Venrock. The Menlo Park, CA-based startup intends to use all that cash to help it develop a novel, minimally invasive treatment for nasal obstruction.
Spirox's technology is intended to treat a significant patient population. Each year, more than 3 million Americans see a physician for symptoms resulting from nasal obstruction and nearly 1 million procedures are performed to alleviate these symptoms. All of these run the risk of surgical complications, which has helped limit their use.
Standard treatment options include surgery to treat a deviated septum, to reduce the size of the turbinates, which are spongy bones in the nasal passageway, or to prevent nasal valve collapse. A minimally invasive approach could conceivably lower the bar for treatment in this patient population.
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| KKR's Jim Momtazee |
"There is a significant need in the ENT space for the technology Duke [Rohlen] and his talented team have created to help people breathe better without having to undergo surgery," said head of KKR ($KKR) healthcare investing Jim Momtazee in a statement. "We look forward to supporting Spirox to address this condition." He will join the company's board as part of the transaction.
Added Brent Senior, chief of rhinology, allergy, and endoscopic skull base surgery at the University of North Carolina, "Nasal obstruction is one of the most common complaints among patients who see an ENT physician, and the condition takes an immense toll on patient quality-of-life. Spirox will help ENTs improve results and relieve suffering for their nasal obstruction patients by addressing nasal valve collapse--a primary but often untreated contributor to symptoms."
Spirox has already received FDA clearance for the Inex absorbable implant for supporting nasal septal cartilage. It's a perforated sheet made of several rodlike elements. It can be trimmed and shaped to the dimensions necessary in a particular patient.
The company is conducting a 30-patient trial of the Inex implant in nasal valve collapse patients. The final endpoints were due last December, with the trial expected to wrap up in November of this year.
This financing follows fast on the heels of an $18.5 million Series B round for Spirox that came just last April. That's an awful lot of cash in a relatively short period of time for a medical device company.
"In addition to being a long-term capital partner, KKR's experience scaling businesses provides us the opportunity to build for the future and help Spirox achieve the next level of growth," said Spirox CEO Duke Rohlen. "We have a shared vision that will enable Spirox to continue to create cutting-edge innovations in order to provide breathing relief for millions of patients who need it."
- here is the announcement