Eden Prairie-based Celleration has raised $8 million in Series E stock toward more sales and marketing resources for its mist therapy wound healing product.
CEO Mark Wagner, who joined the company in 2009, said by phone that Celleration attracted a new Minneapolis-based investor, Sightline Partners, for this latest round, despite a dismal venture capital climate. Past investors such as Affinity Capital, Venture Investors, Triathlon Medical Ventures, Baird Venture Partners and New Science Ventures also contributed, leaving $112,996 in shares for the total goal as yet unsold. “I’m pleased that our investors have expressed their confidence in our team as well as the opportunity for mist therapy,” Wagner said. “We had a very good 2010, and we’re looking to drive our revenue in 2011.”
According to a 2009 Forbes report, Celleration had $10 million in sales in 2008.
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Celleration’s product, Mist Therapy System, was approved by the FDA in 2005. The system consists of an ultrasound generator and transducer, to which is attached a disposable saline applicator. The transducer delivers ultrasound waves through a saline mist applied to a wound. The mist discourages bacteria and carries the low-frequency sound waves, which stimulate cell growth and regeneration. Clinical studies have shown benefit, particularly for chronic wounds such as diabetic foot ulcers.
To date, says the company’s web site, Celleration’s product has treated more than 30,000 patients. Wagner said Celleration also will this year begin pursuing sales in the United Kingdom through a new distribution partner, H + R Health Care. The product received CE certification in 2007.
Celleration has met resistance from insurers for reimbursement. Its patients are primarily covered by Medicare. Six of 10 Medicare Administrative Contractors (MAC) now reimburse at a rate of $104, Wagner said. He declined to say what Celleration charges for the product, but Forbes reported in 2009 that the company then charged $75 per disposable portion of the device.
