Updated 6:07 p.m.
Word is out about the identity of the corporate partner NxThera CEO Robert Paulson mentioned last week. It turns out it’s American Medical Systems Inc.
Minnetonka, Minnesota-based AMS (Nasdaq: AMMD) specializes in medical devices related to pelvic health. Shoreview, Minnesota-based NxThera is developing a thermal vapor prostate treatment — technology that involves the same area of the body where American Medical Systems’ expertise lies.
AMS led a recently completed $12.6 million round of Series B equity financing for NxThera, according to a news release.
The funding beats the $6 million in investments NxThera previously raised.
American Medical Systems was joined in the latest round of financing by NxThera’s existing investors: Arboretum Ventures, Aberdare Ventures and GDN Holdings. Dr. Glen Nelson, chairman of GDN Holdings and retired vice-chairman of Medtronic Inc. (NYSE: MDT), has joined NxThera’s board as part of the funding round.
NxThera’s technology is meant to inject hot vapor into an enlarged prostate in order to shrink it so it stops obstructing the urinary tract. There’s also potential in using the technology to treat prostate, kidney or bladder cancer.
“We believe NxThera’s vapor ablation platform is an exciting technology with the potential to become an efficient and effective outpatient solution that will significantly reduce procedure times with good patient outcomes,” Max Fiore, senior vice president and chief technology officer of AMS, said in the news release.