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A Broomfield, Colorado medical device company that makes a number of spinal fusion devices has raises $8.7 million in its quest to garner $15.1 million, according to a regulatory filing.
Lanx Inc. makes a number of spinal fusion products including the ASPEN MIS Fusion System, a minimally invasive option to pedicle screws in spinal implant procedures.
A study of 85 patients who underwent lumbar fusion was found to have achieved the proper posterior or interbody fusion in 94 percent of patients. There was also a statistically significant improvement in pain reduction using the ASPEN system.
Aside from it being clinically effective, it was also cheaper for hospitals. A prospective study of 55 patients who underwent lumbar fusion using either the ASPEN system or traditional pedicle screws found that patients who used Lanx’s device had shorter hospital stays (28 days) compared with those who received pedicle screws (66 days)
“These findings help confirm the positive patient experiences we have been seeing in our practice, and support the use of the ASPEN device as preferred instrumentation for many patients, such as the elderly, who may not be able to tolerate traditional procedures,” said Dr. Robert Tatsumi of the Northwest Spine Research Foundation in Tualatin, Oregon in a Lanx news release. The data also show that fixation with an ASPEN device can cut a patient’s hospital stay in half, which brings significant benefit to patients and hospitals.
UPDATE: Lanx chief financial officer Steve Deitsch, who was traveling, said via email that the money will be used to expand the sales effort of the Timberline Lateral Fusion System, which was launched in February and is experiencing “exponential growth.”
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
The funds will also be used to bring to market four to six products next year. Deitsch added that new and existing investors participated in the fundraising round, but did not identify them.
But Chicago Growth Partners lists Lanx as a portfolio company and managing partner Arda Minocherhomjee is a Lanx board member. Noro-Moseley Partners, a venture capital firm in Georgia, also lists Lanx as a portfolio company and the firm’s general partner Allen Moseley is also a board member at Lanx.
