Diabetes device company Freedom Meditech has secured a $2 million line of credit from the Silicon Valley Bank, some of which will be disbursed immediately with additional funds being released at certain milestones.
The San Diego-based company, which has research and development operations in Ohio, will use the funds to ramp up manufacturing and distribution of its ClearPath DS-120 Lens Fluorescence Biomicroscope, it said in a statement.
The device scans the crystalline lens of the eye with low-powered blue light, looking for advanced glycosolated end products, a biomarker of episodes of uncontrolled glucose. It can identify patients at high risk for chronic diseases like diabetes up to seven years before the onset of early complications, the company says.
Intended to be used by eye care professionals as part of routine eye exams, the test takes six seconds, produces immediate results and requires no preparation or blood draw.
If everything goes smoothly with the approval process, the company plans to launch ClearPath first in international markets, focusing on countries that accept the CE Mark and CSA Certification Mark. It also submitted a 510(k) application for its device to the U.S. Food and Drug Administration in October of 2011.
Since inception, the company has secured more than $5 million in investment capital. It has recently been pursuing a series B equity investment as well. JumpStart Ventures, the investing arm of Cleveland venture development organization JumpStart, and Catherine Stiefel, longtime director of Stiefel Laboratories, are previous investors.
A second product Freedom is developing is a noninvasive glucose meter that’s held in front of the eye and is intended to be an alternative to the finger-prick method of checking blood glucose.
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