CVRx Receives $113M In New Financing
Medical device maker CVRx said on Tuesday it capped off not only its largest-ever funding round, but also the biggest take by any Minnesota company this year.
The Minneapolis-based company will receive a $93 million cash infusion from its Series G investment round led by Johnson & Johnson Innovation. As of June, CVRx reported 17 unnamed backers in its latest funding round. Details regarding potential additional investors were not included in the company’s announcement.
The funding surpasses 2016’s previous record holder, Minneapolis startup Bright Health, which hauled in $80 million in June.
CVRx said the funds would be used primarily toward growing its commercial operations and completing a pivotal trial for its Barostim Neo device.
The Barostim Neo is currently undergoing a 310-patient study on its effectiveness in treating high blood pressure and heart failure. The implantable neuromodulator is, in a sense, the first of its kind. While millions of Americans use medication to manage high blood pressure and chronic heart problems, the Barostim Neo instead uses electricity (much like a pacemaker) to improve the heart’s ability to pump blood.
The device is part of the U.S. Food and Drug Administration’s Expedited Access Pathway program, which accelerates the approval process for innovative devices that offer treatment for conditions with no alternative treatment options. The Barostim Neo received approval for use in Europe nearly two years ago.
As a part two to its announcement, CVRx also closed a $20 million term loan agreement. Part of the loan will be used to repay a prior loan, the company said, however, it did not provide information as to how the other portion of the $20 million would be used.
In late June, CVRx said it was pursuing $85 million in Series G funding round, which it handedly surpassed. Altogether, the company’s 9-year lifetime of venture capital fundraising totals more than $283 million in five rounds.