Francis Medical Raises $55M in Series B Financing
Maple Grove-based Francis Medical has closed on a $55 million Series B financing round.
Francis Medical president and CEO Mike Kujak says that the financing is effectively “three years of cash” for the company to secure FDA approval for its water vapor treatment of prostate cancer. The company is planning to start a clinical trial in August 2022 and hopes to secure FDA approval in September 2024.
The company’s new financing is the largest venture capital raise so far this year in Minnesota. Last month, Minneapolis-based fintech Branch announced raising $48 million.
Francis Medical started in 2018 as a spinoff from medical startup NxThera Inc., which was sold that year to Boston Scientific for $406 million. NxThera developed a treatment for men with enlarged prostates. But Boston Scientific did not want to buy the NxThera’s cancer application in the deal, prompting the creation of a new company.
Kujak was part of NxThera’s executive team serving as chief marketing officer and senior vice president of its international division.
Francis Medical previously raised $25 million in its Series A financing round.
The new financing round was led by Tennessee-based Solas BioVentures. All of the firms backing Francis Medical in the latest round are existing investors.
“We didn’t allow any new outside money to come in on this round, which is another testament to the technology and what we’re doing,” said Kujak.
The company’s connection to the successful NxThera is a key element in drawing investor backing said Kujak.
Francis Medical’s technology works exactly like NxThera’s therapy. Water vapor is injected into the prostate through a device used in a surgical procedure. One treatment lasts for 10 seconds, with the total outpatient procedure taking about 20 to 40 minutes. A patient with prostate cancer would need several of the treatments during the procedure depending on the amount of cancer they have within the prostate.