Slater Technology Fund Participates in $28 Million Financing for R.I.-Based Medical Device Company
Providence, RI, September 27, 2012 – The Slater Technology Fund announced today that it has committed $500,000 to an investment in medical device firm IlluminOss Medical as part of a $28 million Series C financing. Lead investors include Tekla Capital Management (formerly known as Hambrecht & Quist Capital Management) of Boston and Life Sciences Partners of Amsterdam, Munich and Boston, both of which are new investors in IlluminOss. Other new investors include: Excel Venture Management of Boston, SR One of Philadelphia, and Pappas Ventures of Research Triangle Park, NC. Foundation Medical Partners of Rowayton, CT and New Leaf Venture Partners of New York, NY, both previous investors in IlluminOss, are also participating in the financing.
Based in East Providence, R.I., IlluminOss is pioneering the development of minimally-invasive, photodynamic orthopedic implants for the stabilization and treatment of bone fractures. Founded in 2007 by Bob Rabiner in collaboration with orthopedic surgeons from Lifespan/Rhode Island Hospital, IlluminOss has previously raised in excess of $22 million in venture capital funding. The company has undertaken extensive preclinical development and testing of its technology operating out of headquarters located at 993 Waterman Ave. in East Providence. Since receiving CE Mark approval in 2009, the company’s products have been used in numerous clinical procedures in medical centers throughout Europe. The company’s products are not yet approved for clinical use in the United States.
Rabiner first came to Rhode Island in 2005 with Selva Medical, Inc., a medical device company where he served as CEO. Backed with seed funding from Slater, Selva was acquired in 2006 by W.L. Gore.
The IlluminOss Photodynamic Bone Stabilization System is used to treat fractures through a small entry into the bone. A flexible balloon catheter is inserted into the bone, placed across the fracture site, and infused with a proprietary liquid monomer. The monomer then expands the balloon to assist in the alignment of the fractured bone, and surgeons use a visible light source to illuminate it and convert it into a hardened polymer implant. The result is an exceptionally tough, customized orthopedic implant that provides strength and stabilization to the bone during the healing process.
"This latest round of funding is a critical step forward towards advancing minimally- invasive solutions for the treatment of bone fractures," said Dr. Scott Rader, president and CEO of IlluminOss Medical. "We welcome Slater’s involvement in the financing syndicate and look forward to the support they will provide as we expand our presence here in Rhode Island."
"IlluminOss represents one of the most exciting opportunities in biomedical technology that we have seen in Rhode Island in some time," said Richard Horan, senior managing director of the Slater Technology Fund. "The caliber and commitment of investors comprising the financing syndicate represent a tremendous endorsement of the progress that’s been made, both in product development and in clinical use. We look forward once again to working with Bob Rabiner and the team assembled at IlluminOss."
About Slater Technology Fund
The Slater Technology Fund is an independently chartered, economic development fund that operates in accord with best practices of venture capital investing, backing new ventures committed to basing and building businesses in Rhode Island. Leveraging state and federal funding, Slater focuses its resources on the support of entrepreneurs who have the vision, leadership and commitment to build substantial commercial enterprises. Slater typically invests at the inception stage in the development of a new venture, often based upon ideas and technologies originating in academic institutions and/or government research laboratories located within the region. In most cases, investments are premised upon the possibility of raising substantial follow-on financing, from venture capital investors or from strategic partners, with a view toward accelerating the generation of significant numbers of high-value, high-wage jobs over the intermediate to longer-term. For more information, visit www.slaterfund.com.
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