Medical device company CathRx gathers fresh funds
Privately held medical device company CathRx has ruled off a $4 million bridge round led by joint lead advisers Acova Capital and Bioshore Capital Partners, Street Talk understands.
Medical device company CathRx is seeking to meet global demand for its diagnostic catheters. Virginia Star
Sources said a consortium of high-net-worth individuals and family offices tipped into the raise, alongside its existing investors, which include a similar group that backed the sale of biopharmaceutical company Arana Therapeutics to US-based Cephalon International for $320 million in 2009.
Proceeds will be used to establish international manufacturing capacity to meet demand for its diagnostic catheters with distribution secured across Europe, Asia, the Middle East and Latin America.
CathRx is busy researching, developing and commercialising cardiac electrophysiology catheter medical devices for the $US8 billion global Atrial Fibrillation market. It aims to help hospitals reduce financial and environmental costs by allowing for the reprocessing of catheters on-site.
The company was founded in 1999 Evan Chong and Neil Anderson and listed on the ASX in 2005, before delisting in 2012. Today, it’s led by chair and chief executive Ian Fong.
CathRx’s latest full-year accounts filed with the corporate regulator were prepared on an ongoing concern basis. The company declared a $1.4 million loss in financial year 2022 and cash on hand of $252,000.
The directors noted completing its clinical, regulatory, manufacturing and distribution plans to achieve breakeven and financial stability was “at least another two to three years” down the track, and that funding “remains an issue” until the company is cash flow positive, flagging the funding round.
“Notwithstanding current difficult capital market conditions due to rising interest rates and inflation, the Company intends to make its best efforts to raise new capital in 2023 to continue its commercialisation and product development programs, and for working capital.”
With the latest round closed, and given positive initial success from early trials and growing momentum in diagnostic catheter sales, Acova and Bioshore are beginning to prep for a significant institutional capital raise in the first quarter of next year.
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