Sonex Health Lands $40M Raise
An Eagan-based medical company selling a novel approach to treating carpal tunnel syndrome has landed a fresh round of financing.
On Wednesday, Sonex Health Inc. announced that it has secured $40 million in a Series B raise. California-based medical technologies investor KCK MedTech was the sole investor in the latest round, as well as a $20 million Series A raise in early 2022. KCK is taking equity in Sonex as part of its investment.
Founded by two Mayo Clinic doctors, Sonex Health has developed an FDA-approved device that treats carpal tunnel syndrome with ultrasound technology. Compared to standard surgical procedures for treating the condition, Sonex’s device is a less invasive option and doesn’t require as long of a recovery time, CEO and president Bob Paulson said in a Thursday morning interview.
Using the Sonex device, physicians can treat patients in an “office-based” setting in a hospital or clinic. Paulson said it “hardly ever has to be done in a surgical suite,” which he said is a win for patients and providers. Typical procedures for treating carpal tunnel syndrome can sideline patients for weeks, whereas patients typically recover from a Sonex procedure in a matter of days, according to the company.
“From a health care system perspective, we’re moving this to a much lower cost site of services, which is good for everybody,” Paulson said.
The $40 million raise will, in part, go toward getting more physicians to use the Sonex device. That will include things like education programs for both physicians and patients about the device. Paulson said the company also plans to use the funds to build out more clinical data, which in turn can be used to help convince insurers to cover the procedure. Sonex earned FDA approval in 2016, but it has continued to pursue several additional clinical trials to bolster the case for its device.
At the same time, Sonex is looking into using the device to one day treat other conditions affecting the upper extremities. Paulson said the plan is to use some of the recently raised funds to “continue to expand the technology platform into new indications.”
Alongside the Series B announced Tuesday, Sonex also established a new debt facility with venture lender Horizon Technology Finance Corp. Paulson noted that the company had an existing relationship with Horizon that predated his arrival in 2021. Sonex has the option to draw money from the updated debt facility to cover additional expenses as needed.