Pavilion Holdings Group Announces Expansion Plans for Medtech Portfolio
Following Vortex Exit
*Time and Capital Efficient Pavilion Model Extended to Three New Companies
Moving Rapidly to Commercialization/Exit -
*Launching Pavilion Ventures to Aggregate Pipeline Including Five
Innovative Medical Device Products -
NEW YORK -- December 19, 2013
Pavilion Holdings Group, LLC (PHG), an emerging medical technology leader
revolutionizing the way that products are developed, financed and
commercialized, provided an update today on progress in advancing its
pipeline, as well as corporate plans to launch a new entity that will unite
five promising medical technology products and additional early-stage projects
into one vehicle.
The LeadRail CRM Lead Extraction System (Photo: Business Wire)
The LeadRail CRM Lead Extraction System (Photo: Business Wire)
PHG deploys a virtual business model, with outsourced best-in-class process
expertise that maximizes operational and capital efficiency. In contrast to
bio-pharmaceutical technologies, medical devices can potentially move from
concept to commercialization to large exits with modest capital and time
investments, leading to attractive rates of return for early investors if
companies use their capital efficiently. Hallmarks of companies created in
accordance with the Pavilion Model include:
*Smallest single funding round necessary to reach commercialization
*Minimal baseline capital burn rate
*Credible path to self-commercialization or early acquisition by a
“PHG’s mission is to bring cutting-edge products targeting attractive markets
to commercial stage as quickly as possible, while preserving investor equity.
Our truly virtual corporate structure and disciplined focus on time and
capital efficiency, has allowed us to accelerate value creation for investors
and future strategic partners,” said Michael Glennon, PHG Partner/Co-Founder
and CEO of Saphena Medical and Cruzar Medical.
The PHG team, which includes industry veteran Glennon and renowned cardiac
surgeons/entrepreneurs, Lishan Aklog, and Brian deGuzman, sold their first
company, Vortex Medical, Inc. and its revolutionary AngioVac® technology to
Angiodynamics, Inc. in late 2012 for $55 million and additional earn-outs
estimated to be worth at least $20 million. The team demonstrated the unique
value of their model by moving Vortex from concept to commercialization to
acquisition in less than five years, following a single $3.5M funding round,
while generating a minimum 800% return to their investors.
In the past ten months PHG has spun out three additional venture/angel backed
companies from its incubator. These companies are following the same model and
also moving rapidly towards regulatory clearance, commercialization and/or
exit. Kaleidoscope Medical, LLC has developed the first vena caval filter
which can be left permanently, retrieved or reversed at a later date. Saphena
Medical, LLC’s advanced endoscopic saphenous vein harvesting technology for
coronary bypass surgery is more efficient and less traumatic than the current
standard of care. Finally, Cruzar Medical, Inc. is taking an exciting,
radically new approach to the persistent challenge of crossing chronic total
occlusions (CTO’s) in blood vessels.
“It has been gratifying to confirm that our well-honed Pavilion model, which
worked so impressively with Vortex, can be successfully applied to new
products in different markets. If anything, Kaleidoscope, Saphena and Cruzar
are moving more rapidly and efficiently than Vortex,” said Brian deGuzman, MD,
PHG Partner/Co-Founder and CEO of Kaleidoscope Medical.
Looking ahead, PHG is seeking even more efficient ways to advance its robust
pipeline. This pipeline includes five mature projects (nearly all with issued
patents, proof of concept and/or working prototypes) targeting
pacemaker/defibrillator lead extraction, transcatheter mitral valve repair,
reversible endoscopic treatment of obesity, tissue ablation including renal
denervation for hypertension and disposable infusion pumps. It also includes a
six to eight additional projects addressing important clinical needs which are
in the early, conceptual stage.
To this end, PHG is announcing the launch of Pavilion Ventures to aggregate
its entire current project pipeline, as well as future projects under one
corporate entity. Pavilion Ventures plans to raise approximately $10 million
to fund this pipeline and will operate and manage the emerging portfolio
collectively according to the Pavilion Model. This consolidation should
provide immediate additional benefits compared to a series of single-product
start-ups by providing multiple shots on goal, economies of scale, expanded
capacity and much greater flexibility to deploy capital based on a project’s
real trajectory, not a forecast.
“We plan to offer the opportunity to participate in the growth of a
diversified portfolio of companies that is balanced between shorter-term,
lower-risk projects and longer-term projects with much higher projected exits.
Our intent is to deploy the proven Pavilion Model on a broader scale to
maximize medium and long-term return. We believe this approach overcomes many
of the shortcomings of the current financing landscape for new medical
technologies,” said Lishan Aklog, PHG Partner/Co-Founder and CEO of Pavilion
About Pavilion Holdings Group (PHG) LLC
Pavilion Holdings Group was founded by cardiac surgeons Lishan Aklog MD and
Brian deGuzman MD and medical device executive Michael Glennon to build a
portfolio of medical device companies which provide commercially successful,
innovative tools to alleviate human suffering. PHG portfolio companies are
built and operate with a focus on rapidly bringing cutting edge products into
large markets. Its unique virtual business model, with outsourced
best-in-class process expertise, maximizes operational and capital efficiency,
preserving founder and investor equity and facilitating strategic partnerships
or acquisitions. PHG's first company, Vortex Medical, Inc, progressed from a
modest initial capitalization round, through successful commercialization to
acquisition by Angiodynamics, Inc. in less than five years, providing its
early investors with an attractive return. It co-founded an incubator Pavilion
Medical Innovations which has spun out three companies and continues to feed a
pipeline of exciting medical device products.
Photos/Multimedia Gallery Available:
Lazar Partners Ltd.
Tanner Kaufman, 646-871-8487
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