Elevage Capital Fund Leads Flowonix Financing
Flowonix Medical announced it obtained debt and equity financing totaling approximately $40 million. The transaction includes $20 million in equity investment, led by a private equity fund managed by Elevage Capital Management.
The company expects to use the proceeds from this financing to further its investment in sales and marketing infrastructure, new product development and to support the commercial ramp of its Prometra Programmable Infusion Pump System in the chronic pain market.
The transaction includes $20 million in equity investment, led by a private equity fund managed by Elevage Capital Management. The equity investment also included participation from Clarus Ventures and other existing Flowonix investors, as well as new investors including Hercules Technology Growth Capital. Additionally, the fundraising included $15 million in venture term debt financing and an accounts receivable line credit of up to $5 million from Hercules, provided certain conditions are met. Armentum Partners acted as the placement agent for the debt financing.
“Our partners at Armentum were instrumental in this process, with their work leading directly to the completion of this important financing round. Through their efforts, we received an overwhelming response from the lender community, which resulted in term sheets from several highly respected organizations. We ultimately selected Hercules as our lender of choice as a result of their strong reputation, enthusiasm toward the potential of our Prometra System, and proven commitment to supporting the efforts of emerging medical technology companies such as Flowonix,” said Lou Altieri, CFO of Flowonix.
“This additional capital will meaningfully advance our commercial initiatives as we continue to develop the resources necessary to support the rapid growth of our Prometra device. Since securing FDA approval two years ago, we have made great progress in positioning the Prometra System in the market,” said Steve Adler, president and CEO of Flowonix. “With unparalleled accuracy, longevity and safety, we believe that our technology has the potential to become the gold standard in intrathecal drug delivery for chronic pain treatment, and we look forward to expanding Prometra’s footprint as we begin to build and mobilize our sales and support teams and execute on our commercial growth strategy. The chronic pain market represents an opportunity of several hundred million dollars, but with this additional capital, we plan to undertake a series of initiatives aimed at further expanding the addressable market for our technology by broadening the universe of patients that can benefit from treatment with the Prometra System. We look forward to providing additional details on these efforts, which will include patients suffering from cancer pain as well as those who fail other implantable treatments.”
Chad Norman, managing director of Hercules, added, “As we increased our familiarity with the Flowonix story, we have become increasingly enthusiastic toward their technology and its potential in the market. We believe that the Prometra Pump System represents a breakthrough in pump-based drug delivery, and is capable of bringing significant benefit to clinicians and patients alike. We are proud to be a capital provider for Flowonix as the Company ramps its commercial initiatives for this unique, value-added technology solution.”
Flowonix Medical provides therapy solutions for chronic pain.