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| SImmetry Sacroiliac Joint Fusion System |
Reimbursement for sacroiliac joint fusion as a treatment for some kinds of lower back pain is becoming more common after it gained a reimbursement code at the start of this year, despite the procedure remaining somewhat controversial.
A pair of companies got financed this week to capitalize on that, the latest being Zyga Technologies, a Minnetonka, MN-based startup that has raised $20 million to back its SImmetry Sacroiliac Joint Fusion System. On Nov. 17, another startup with a lower back joint fusion system, SI-Bone, disclosed a $39.2 million infusion of debt.
"We expect clinical acceptance and utilization of SI joint fusion to grow dramatically over the next 12-18 months," said Zyga President and CEO Jim Bullock in a statement. "The funds secured in this round of financing will be important as Zyga reinforces its commercial operation, and drives collection of clinical data demonstrating the SImmetry system's ability to provide a successful SI joint arthrodesis both clinically and radiographically."
The financing is intended to help the company grow sales and improve reimbursement next year. It will also be used to conduct clinical trials designed to show radiographic fusion and reduction of pain with its SI system. It consists of $15 million in debt led by Oxford Finance and Bridge Bank and another $5 million in equity from all existing major investors. Zyga investors include Versant Ventures, Domain Associates, MB Venture Partners and Split Rock.
The financing is a combination of $15 million in debt supplemented with $5 million in equity. Oxford Finance and Bridge Bank co-led the debt refinance and the equity financing was supported by all existing major investors.
Bullock has headed up Zyga since November 2011. He previously led Atritech, which was acquired by Boston Scientific ($BSX) for up to $375 million in 2011. Prior to that, Bullock led another atrial fibrillation player Endocardial Solutions that was acquired by St. Jude Medical ($STJ) for about $272 million in 2005.
Atritech was the source of Boston Sci's Watchman Left Atrial Appendage Closure Device, a somewhat controversial device that took its time wending through FDA that was recently hit with a restrictive decision from the Centers for Medicare & Medicaid Services (CMS) and was the subject of a major recall.
Zyga also has the Glyder Facet Restoration Device for facet joint pain patients not gaining relief from conservative treatment. Glyder is currently in a 20-patient U.S. feasibility study.
- here is the announcement