Monteris Medical Raises $13 Million in Financing

Monteris Medical Inc. has raised $13.3 million ($8.3 million preferred share component and $5 million of term debt) to commercialize its NeuroBlate System in the North American neurosurgery market. With this latest financing round, total capital raised in 2012 and 2013 exceeds $30 million.

BDC Venture Capital led the preferred share round, with the remainder funded by the SWMF Life Science Fund and other independent parties. Oxford Finance LLC provided the term debt.

“Monteris Medical is a great example of how BDC Venture Capital is providing health tech companies with access to the capital required to develop and commercialize new, cutting-edge healthcare technologies,” said Gary Bantle, partner with BDC’s Venture Capital Healthcare Fund. “We are pleased to support Monteris Medical’s medical device technology, which offers neurosurgeons a new treatment solution for patients suffering from brain tumors or epilepsy.”

“Oxford values its relationship with Monteris Medical and will provide financial support to the company as it expands its commercial operations,” said Christopher Herr, managing director for Oxford Finance. “Medical device segment investments form an important part of our portfolio.”

Monteris President/CEO John Schellhorn said the money will be used to market the Canadian company’s NeuroBlate System throughout North America. The MRI-guided system enables minimally invasive, laser ablation of soft tissue in the brain, including brain tumors. According to the company, the NeuroBlate System interfaces with an active magneti sresonance imaging for visualization of the target area to enable surgical decision making. It reportedly is the only system which monitors ablation contours in 3-D and provides rendered images to support a surgeon’s ability to make clinical decisions in real-time. The NeuroBlate System has been used as therapy for brain tumors, focal epileptic lesions and chronic inflammation caused by ionizing radiation (called “radiation necrosis”).

“I am pleased to have resources to fund full commercialization of the NeuroBlate System in North America,” Schellhorn said. “The NeuroBlate System is meeting clinical expectations and our sales pipeline is growing while our surgeon customers increase their utilization of the system. Monteris is entering a new phase as we transition from our limited launch to full-scale commercialization.

“The monies raised will be used not only to support NeuroBlate System® commercialization, but the company’s clinical trial initiatives as well,” added Chairman Greg Barrett. “Two studies evaluating the use of the NeuroBlate System within current standards of care in the treatment of brain tumors are underway. We are optimistic that results will show that NeuroBlate offers a confirmed addition to the treatment algorithm in this deadly disease.”

Formed in 1999, Monteris Medical is a privately held medical device company developing MRI-guided, laser-based therapy for brain lesions. Besides the NeuroBlate System, Monteris also developed the AXiiiS Stereotactic Miniframe, a single use platform for image-guided, stereotactic brain biopsy, and the AtamA Stabilization System for MRI-guided neurosurgical procedures that require rigid head fixation.

With more than $1 billion under management and more than 25 years of industry experience, BDC Venture Capital is an investor of choice focusing on IT, health and energy/cleantech companies, as well as venture funds.

Oxford Finance is a specialty finance firm providing senior secured loans to public and private life sciences and healthcare services companies worldwide. In recent years, Oxford has originated over $2 billion in loans, with lines of credit ranging from $500,000 to $50 million. Oxford is headquartered in Alexandria, Va., with additional offices in California, Illinois, Massachusetts and North Carolina.