Devices & Diagnostics

Cardiac device maker Neograft raises $3 million

Cardiac device maker Neograft Technologies is developing new innovative medical devices focused on coronary artery bypass graft surgery, a procedure in which a blood vessel is typically removed from a patient's arm or leg and placed around a blockage in the heart to "bypass" the blockage and restore blood flow. The implanted blood vessel is called a graft. If the Angioshield is proven to be effective, its potential market is very large. About half-a-million coronary artery bypass surgeries are performed annually in the U.S. In addition, there are approximately 80,000 lower extremity bypass graft surgeries performed each year in the country. Revenue generated by products in the procedures totals about $1.6 billion annually, according to the company.

By Brandon Glenn on January 18, 2011 10:04 am

Cardiac device maker Neograft Technologies has raised $3 million, according to a document filed with the U.S. Securities and Exchange Commission.

The company, which has operations in Pittsburgh and Newport, Rhode Island, is developing a device to be used in coronary artery bypass graft surgery, a procedure in which a blood vessel is typically removed from a patient’s arm or leg and placed around a blockage in the heart to “bypass” the blockage and restore blood flow. The implanted blood vessel is called a graft.

Neograft’s Angioshield device would be used to structurally support veins to be used as arterial vein grafts. The company says its device would reduce the failure rates of arterial vein grafts and save money in the treatment of chronic disease patients. About one-quarter of arterial vein grafts become blocked within a year of implantation, according to the company.

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The device hasn’t been cleared for U.S. sales and it’s unclear, whether, or how extensively, it’s been tested on humans. A company representative didn’t immediately return a call.

In early 2010, the company raised $6.3 million from three investors, according to a regulatory filing. The latest fundraise was sourced from five investors.

There is a huge market opportunity in this space for new innovative medical devices. About half-a-million coronary artery bypass surgeries are performed annually in the U.S. In addition, there are approximately 80,000 lower extremity bypass graft surgeries performed each year in the country. Revenue generated by products in the procedures totals about $1.6 billion annually, according to the company.