Med-Tech Co. CVRx Lands $30M In Private Equity Funds

Med-Tech Co. CVRx Lands $30M In Private Equity Funds

The Minneapolis-based company, which raised more than $200 million prior to the recession, said it will use the new funding to help finance clinical trials.

CVRx, Inc., a Minneapolis-based medical device firm, said late Wednesday that it has closed on $29.6 million in private equity financing.

The company, which developed an implantable system designed to treat hypertension and heart failure, said it plans to use the funding for the “primary purposes of advancing its clinical trials and expanding its international commercial activities.”

The financing round was led by two venture capital firms—California-based New Enterprise Associates, Inc. (NEA), and Johnson & Johnson Development Corporation, a subsidiary of New Jersey-based Johnson & Johnson.

NEA, which was founded in 1978, focuses on entrepreneurs and makes investments at all stages of a company’s development; it has $13 billion in committed capital across its affiliated funds, according to CVRx. Johnson & Johnson Development Corporation, meanwhile, focuses on venture-funded health care companies.

Other participants in the latest funding round included existing CVRx investors Texas-based BBT Fund, L.P., and Minneapolis-based SightLine Partners.

CVRx’s Barostim Neo product, which was previously approved in Europe for treatment of hypertension, received approval from the U.S. Food and Drug Administration in April to proceed with a hypertension study. It’s also under evaluation for the treatment of heart failure in Europe and the United States.

The product is designed to treat high blood pressure and heart failure by triggering the body’s natural blood-flow regulation. It electrically activates baroreceptors, the body's natural blood-pressure sensors that regulate cardiovascular function, which trigger the brain to cause arteries to relax and the heart to slow down, among other things, allowing proper blood flow.

The latest funding round is the first that CVRx has completed in several years. The company, which was founded in 2001, raised a total of $209 million prior to the steep economic downturn in late 2008. CVRx currently has 70 employees.

CVRx Chief Technology Officer Robert Kieval, a former medical director at Fridley-based Medtronic, Inc., spoke to Twin Cities Business for a recent story about patents and innovation in Minnesota.