Lumen Biomedical sells core product to generate much-needed cash

PLYMOUTH, Minnesota — Lumen Biomedical Inc. has sold one of its two clot removing devices to boost its balance sheet as the company struggles to stay afloat in a tough economy.

Volcano Corporation, a San Diego-based medical device manufacturer, purchased Lumen’s Xtract catheter for an undisclosed sum. The company had been Xtract’s exclusive global distributor since May 2009.

In an interview, Lumen CEO Steven Healy said the company wanted to move out of manufacturing and focus on product development.

“We saw [the Volcano deal] as a way in a tough financial market to raise much-needed funds,” Healy said. “Lots of smaller medical device companies are facing lots of challenges and we’re no different.”

Healy said he hopes Lumen can generate the capital it needs by finding new markets for its remaining FiberNet system, which prevents plaque debris released during a stenting procedure from traveling through the carotid arteries and getting stuck in the brain.

Founded in 2003, Lumen employs 15 people. Former CEO and co-founder Matthew Ogle recently started Vatrix Medical Inc., an Eden Prairie-based start-up developing a diagnostic kit that can predict the risk of aneurysms in a patient by analyzing the presence of genetic biomarkers in blood and urine.