Bonesupport AB, a Lund, Sweden-based developer of innovative injectable bioceramic bone scaffolds to treat bone voids caused by trauma, infection, disease or related surgery, raised $37m (SEK327m) in a combination of equity and debt financing.
The equity financing was led by Tellacq AB with participation from major shareholders including HealthCap, Lundbeckfond Ventures, Industrifonden, AP3 (The Third Swedish National Pension Fund) and Carl Westin. In conjunction with the funding, Dr. Håkan Björklund of Tellacq AB will be joining the Board as Chairman.
The debt finance was provided by Kreos Capital.
The company intends to use the new funds to drive sales for the Cerament platform in existing and new markets, generate further clinical data, and continue to build the product pipeline.
Founded in 1999 by Prof. Lars Lidgren and led by Richard Davies, CEO, Bonesupport has developed Cerament, an innovative range of radiopaque injectable osteoconductive bioceramic products that have the ability to heal defects by remodeling to host bone in six to twelve months. The lead product, Cerament BVF avoids hospital readmissions and revision surgery that result from failed bone healing and infection caused by residual bone voids. It is commercially available in the U.S., EU, SE Asia and the Middle East.
Its properties as a drug eluting material have been validated in clinical practice by Cerament G and Cerament V, the first CE-marked injectable antibiotic eluting bone graft substitutes. The local delivery feature enables an initial high concentration of antibiotics to the bone defect and then a longer sustainable dose above the minimal inhibitory concentration (MIC) to protect bone healing and promote bone remodeling.
The company has also recently received approval from the US Food and Drug Administration (FDA) to begin an IDE (Investigational Device Exemption) study with Cerament G. The first patient is expected to be recruited into this prophylactic study before the end of 2016.