Acid reflux treatment company Torax Medical announced Wednesday that it has raised $30 million in a series D round. The company makes an implant that uses magnetized titanium beads to prevent stomach acid from making its way into the esophagus.
Company name: Torax Medical.
Industry: medical devices.
Location: Shoreview, Minnesota.
Solution/product: LINX Reflux Management Systemuses a small, flexible band of interlinked titanium beads wrapped around magnetic cores that is laparoscopically implanted around the esophageal sphincter. The magnetic attraction is designed to resist the opening of the sphincter to gastric pressure, thereby preventing the entry of stomach acids into the esophagus. At the same time, much higher pressures from swallowing can overcome the magnetic pull and allow food and liquid to pass normally into the stomach. It is now available in both Europe and the U.S. Mayo Clinic Florida has begun offering acid reflux treatment using this therapy.
Money raised: $30 million in series D. The company has raised at least $31 million in previous rounds, according to regulatory filings.
How it will be used: The funds will be used to expand the commercialization of the LINX Reflux Management System.
Investors: The lead investor in the series D was Piper Jaffray Merchant Banking. Other investors were Sanderling Ventures, Thomas McNerney & Partners, Accuitive Medical Ventures, Kaiser Permanente and Mayo Medical Ventures.
Management team: Todd Berg, co-founder, president and CEO; Jon St. Germain, vice president of research and development; Jim Russell, vice president of regulatory and quality; Brian Mower, vice president of finance; and Brent Collins, vice president of market development and education.
Market: Gastroesophageal reflux disease (GERD) affects 4 percent of Americans, according to the Agency for Healthcare Research and Quality.
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