|Cardiva's Vascade vascular closure system--Courtesy of Cardiva Medical|
GE Capital has lent Cardiva Medical $12.5 million to ramp up commercialization. The company hopes that the firm's Healthcare Financial Services unit will aid its efforts by bringing to the table its own medical device experience. Cardiva markets vascular closure products for use after catheterization including Vascade and Catalyst.
Most recently, Vascade was approved by FDA in 2013 and received a CE mark in 2012. It's designed based on collapsible disc technology that provides temporary hemostasis during the procedure then it delivers a thrombogenic, resorbable collagen patch to securely close an arteriotomy without intravascular components. In a pivotal trial, Vascade was more effective than manual compression when measured by time to hemostasis and time to ambulation after surgery; it also resulted in fewer complications. FDA approved Catalyst II and Catalyst III in 2007 and 2009, respectively.
Cardiva also made a recent executive hire in support of its commercialization efforts. In January, Cardiva brought in Randy Hubbell as the chief commercial officer; he was previously a vice president of worldwide marketing at Johnson & Johnson's ($JNJ) Ethicon Biosurgery, where he was responsible for hemostasis and surgical sealant products.
"We realized that we needed a knowledgeable financial partner to fund our day-to-day capital needs for commercializing Vascade," Cardiva CEO Charles Maroney said in a statement. "We were impressed by HFS' deep knowledge of the healthcare industry and its understanding of the process involved in bringing medical devices to market."
The financing includes a $10 million term loan and a $2.5 million asset-based revolving loan, providing a flexible structure that can grow along with the company.
Cardiva venture investors include TriVentus, PTV Science, Galen Partners, Sycamore Ventures and AmKey Ventures.
- here is the release