Valeritas hauls in $100M for insulin device

Valeritas has secured $100 million in financing to market the V-Go device.--Courtesy of Valeritas

New Jersey's Valeritas has secured up to $100 million in structured debt financing, cash the company will use to sell its FDA-cleared and CE marked V-Go insulin device.

Capital Royalty is behind the cash infusion, which Valeritas said will help it expand its share of the Type 2 diabetes market. V-Go is a fully disposable delivery device that metes out a continuous rate of insulin for 24 hours with on-demand mealtime dosing, the company said, providing an alternative for patients who need multiple insulin injections per day. In 2011, the FDA cleared V-Go to deliver Novo Nordisk's ($NVO) NovoLog insulin treatment.

The insulin device world is more than a little top heavy, with the likes of Johnson & Johnson ($JNJ), Abbott Laboratories ($ABT) and Roche ($RHHBY) controlling major shares of the market. V-Go's ease of use and combination of capabilities, however, make it a unique offering, Valeritas said, and, in putting up $100 million, Capital Royalty believes the device could take off.

"The V-Go is unlike anything else on the insulin-delivery market for patients with Type 2 diabetes," Capital Royalty Chairman Charles Tate said in a statement. "We see great long-term potential in the V-Go, and our investment in Valeritas aligns with our continued focus on building customized financing solutions for healthcare companies with innovative commercial technologies."

Last month, Capital Royalty inked a similar deal with Massachusetts' Good Start Genetics, providing up to $28 million to help the company expand its sequencing-based carrier screening technology, and the firm has pieced together an $805 million fund tabbed for emerging medical device and biotech companies.

For Valeritas, the structured debt follows the $150 million in equity financing it raised in 2011. The company has also developed the h-Patch for the delivery of non-insulin compounds, the Mini-Ject pre-filled needle-free delivery system and the Micro-Trans transdermal delivery patch.

- read the announcement

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