NxThera Raises $15.3 Million In New Financing
Medical device and technology insiders know that attracting venture capital and other financing has become increasingly challenging for med tech startups. But Maple Grove-based NxThera Inc. has been an exception. The company has raised $15.3 million in new financing from existing investors said Bob Paulson, president and CEO of NxThera.
Paulson said that the company is ultimately trying to raise $30 million to $35 million in its current round of financing.
“We’re in the process of raising the second half of the round,” said Paulson.
NxThera’s Rezum System treats an enlarged prostate, a common condition for older men, by injecting steam into the prostate. The company secured FDA clearance for its product in August 2015; last year marked its first full year of sales. Paulson said that the new financing will help accelerate its expansion in the U.S. market.
“The first year went fantastic…it went so well we decided to more than double the sales force,” said Paulson. “We did several thousand procedures in the first year of commercial launch.”
Paulson declined to disclose the size of his current sales force, citing competitive concerns.
NxThera raised more than $80 million in its three previous rounds of financing.
In December 2015 NxThera completed a $40 million round of financing led by Massachusetts-based Boston Scientific Corp. That’s a strong vote of confidence for NxThera’s technology. Boston Scientific, one of the largest medical device companies in the industry, reported revenue of $8.4 billion for 2016. Boston Scientific already has a large presence in Minnesota with approximately 7,000 employees in the state.
In February 2014 NxThera announced that its Series C round of financing had exceeded its goal of $20 million. Previously, the company announced raising $21.6 million in its Series B financing round in 2011.
NxThera was one of five local companies that Twin Cities Business featured last year in a look at emerging businesses that had drawn significant financing.
Paulson said that NxThera brings a “disruptive therapy” to the treatment of enlarged prostate, clinically referred to as benign prostatic hyperplasia (BPH).
Surgery for the condition can lead to complications and many men don’t tolerate the drug therapy option, said Paulson.
NxThera’s system offers a minimally invasive procedure that can be performed in a doctor’s office.
“More than 12 million guys are suffering from BPH in the U.S.,” said Paulson. “It’s a vastly under-served market.”