Spinal Restoration, Inc. Closes $5 Million Equity and Debt Financing Round
Round funds Biologic License Application Submission and Commercialization
Efforts for the Biostat® System
AUSTIN, Texas -- October 22, 2012
Spinal Restoration, Inc. announced today the closing of a $5 million financing
round that will fund the company’s Biologic License Application (BLA)
submission and early commercialization efforts for the Biostat System. The $5
million in financing includes $3 million in equity from current investors
Austin Ventures, Sante’ Ventures, and MB Venture Partners, and a $2 million
debt facility from Comerica Bank.
Kevin Lalande, Managing Director of Sante’ Ventures, commented, “The Biostat
System is one of those rare technologies that truly has the potential to
dramatically change the lives of millions of patients. Over the last five
years, the management team at Spinal Restoration has done a masterful job
establishing agreements with key industry partners and completing significant
milestones, including preclinical studies, a pilot clinical trial, and now a
Phase III clinical trial, while remaining very capital efficient.” Mr. Lalande
concluded by saying, “The current investors believe strongly in this
technology and management team, and look forward to the Company’s BLA
submission with FDA next year.”
Gary Sabins, President and CEO of Spinal Restoration, responded by saying,
“The continued financial support and confidence of our existing investors
reflects the potential of the Biostat System to help the millions of patients
that suffer from debilitating discogenic low back pain each year. With the
additional backing of Comerica Bank, Spinal Restoration is well funded to
complete our BLA submission and initiate our commercialization efforts for the
The Biostat System is the first intradiscal biologic therapy for discogenic
pain to complete enrollment of a Phase III Investigational New Drug (IND)
study. Spinal Restoration will complete the analysis of the 6-month primary
endpoint data in the first quarter of next year. The company expects the
outcomes from this study, along with data from its previous preclinical and
pilot clinical studies, to provide the basis for a BLA submission to the FDA
in mid 2013. If successful, the Phase III study of the Biostat System could
have an extensive, far-reaching impact on the diagnosis and treatment of
millions of patients who suffer from the debilitating effects of chronic
discogenic low back pain.
About the Biostat System
The Biostat System is an investigational new drug and is limited by federal
law to investigational use only. The Biostat System consists of BIOSTAT
BIOLOGX® Fibrin Sealant, a human derived, resorbable biologic tissue sealant,
and the Biostat® Delivery Device, a proprietary application system designed to
safely and effectively deliver the biologic to the intervertebral disc.
Application of BIOSTAT BIOLOGX Fibrin Sealant to the disc may alleviate
discogenic pain by sealing the painful disc disruptions, reducing
inflammation, and enhancing tissue repair.
About Spinal Restoration
Spinal Restoration restores patients’ lives by delivering new therapies that
address unmet needs in spine health management. These therapies are minimally
invasive, early interventions with clinically proven results. The company is
working with a diverse, highly regarded group of clinical and scientific
advisors to develop and gain regulatory approval of the Biostat System, a
proprietary resorbable biologic and delivery system for the treatment of
chronic disc pain, based on solid scientific and clinical evidence. Visit
www.spinalrestoration.com for more information.
About Austin Ventures
Austin Ventures (“AV”) has worked with talented entrepreneurs to build
valuable companies for over 25 years. With $3.9 billion under management, AV
is the most active venture capital and growth equity firm in Texas and one of
the most established in the nation. With an investment focus on business
services and supply chain, financial services, new media, Internet, and
information services, AV invests at all stages of company development, from
$100,000 in “planned experiments” in early-stage ideas to $100+ million
investments in expansion rounds and recapitalizations. AV’s strategy is to
partner with talented executives and entrepreneurs through its
CEO-in-Residence and Entrepreneur-in-Residence programs. Visit
www.austinventures.com for more information.
About Sante’ Ventures
Sante’ Ventures is a life sciences venture capital firm that invests
exclusively in early-stage companies developing innovative new medical
technologies or healthcare delivery models. The firm was founded in 2006 and
has $260 million in capital under management in two funds. For more
information, visit www.santeventures.com.
About MB Venture Partners
MB Venture Partners is a Memphis, Tennessee venture capital firm that provides
venture capital and strategic direction to life sciences companies. The firm
invests in medical device and biotech companies at various stages of
development and is especially interested in product solutions for
musculoskeletal disease. The firm manages four separate funds totaling more
than $110 million in committed capital and has invested in 25 start-ups.
Additional information about the firm can be found at www.mbventures.com.
About Comerica Bank
Comerica Incorporated (NYSE: CMA) is a financial services company
headquartered in Dallas, Texas, and strategically aligned by three business
segments: The Business Bank, The Retail Bank, and Wealth Management. Comerica
focuses on relationships, and helping people and businesses be successful. In
addition to Texas, Comerica Bank locations can be found in Arizona,
California, Florida and Michigan, with select businesses operating in several
other states, as well as in Canada and Mexico.
Spinal Restoration, Inc.
Gary Sabins, 512-225-0405 x18
President and CEO
John Wheeler, 512-225-0405 x12
Director of Product Development and Marketing
Press spacebar to pause and continue. Press esc to stop.