Cappella, Inc. (Cappella) today announced that it has completed the first tranche of a €10.5 million Series D investment, from existing investors, Polytechnos Partners, ACT Venture Capital, Fountain Healthcare Partners, Mitsui & Co. Venture Partners (MCVP) and venture debt financing from Kreos Capital Limited and Silicon Valley Bank, the commercial banking division of SVB Financial Group (Nasdaq: SIVB).
"Silicon Valley Bank has been dedicated to helping entrepreneurs succeed for nearly 30 years. We are delighted to be in a position to support Cappella with its continued growth as it expands its global network and product pipeline."
Proceeds will be used to finance the expanded launch of Cappella's proprietary Sideguard™ Sidebranch stent for the treatment of Bifurcated Vascular Disease in Europe and South America, to provide additional manufacturing capacity and to advance key R&D programs in Galway on additional applications of Cappella's technology in Complex Coronary Artery Disease (CAD).
Commenting on this financing, Dr. Art Rosenthal, Cappella’s CEO, said "This funding will allow us to expand our direct Sales and Distribution network, expand our product pipeline, provide an additional 7,500 sq. ft. facility for manufacturing capacity and additional R&D laboratory space for our development programs. We believe our proprietary products will treat many types of bifurcation disease, including Left Main Bifurcation Disease and our innovative sheath delivery system for self expanding nitinol devices will give us a platform to expand our range of products and build on the positive market reception of the Sideguard launch."
During the recent Transcatheter Cardiovascular Therapeutics (TCT 2010) Congress Dr Farzin (Faz) Fath-Ordoubadi (Manchester Royal Infirmar, Manchester, UK) presented several cases where the benefit of protecting the ostium with the Sideguard device resulted in positive successful patient outcomes. "The Sideguard technology comes close to the ideal technology as it provides an easy-to-use solution that minimizes procedural time and number of steps. It protects the sidebranch vessel and ostium upon placement and secures access to the main branch at all times. Finally, the stent design is suitable for a variety of bifurcation lesions. Clinical practice with Sideguard indicates excellent acute results; however, I look forward to the 1-year data to confirm that this benefit is sustained with low target lesion revascularization (TLR)."
Phil Cox, Head of UK, Europe and Israel commented: "Silicon Valley Bank has been dedicated to helping entrepreneurs succeed for nearly 30 years. We are delighted to be in a position to support Cappella with its continued growth as it expands its global network and product pipeline."
Eamonn Hobbs, Chairman Cappella's Board stated, "This is a very exciting time for Cappella. The company’s commercial launch which began at the recent TCT meeting in Washington, D.C. is progressing very well and this latest round of funding is a key step that will allow the company to drive market penetration for its Sideguard™ Sidebranch stent product lines while continuing to broaden its product offerings to address what is a large market opportunity by providing an enhanced approach to the current provisional and other sidebranch treatment techniques."
About Cappella Inc
Cappella, Inc. (“Cappella” or the “Company”) is a medical device company that is developing novel solutions for the treatment of Complex Coronary Artery Disease (CAD) and specifically bifurcation vascular disease. The Company’s initial product is the Sideguard™ Sidebranch stent. This technology addresses an unmet medical need in CAD. The company was founded in 2004 by Antonio Columbo, M.D., Chief of Invasive Cardiology at San Raffaele Hospital in Milan, Italy, and Ascher Shmulewitz, M.D., Ph.D., a cardiologist, medical device entrepreneur and founder of NeoVision, Xcardia and Labcoat Ltd., and established its European headquarters in Galway in 2005.
The Sideguard™ Sidebranch stent is an anatomically shaped self-expanding coronary stent that utilizes a unique peel-away delivery system. Both the stent and this delivery system were developed by Cappella Medical Devices Ltd. The unique delivery technology overcomes a number of delivery problems associated with existing nitinol stents, including reduced profile and improved placement accuracy over traditional delivery systems.
Cappella continues to enjoy the support of its strong investor syndicate of Irish and Internationally active venture capital;Polytechnos Venture Partners, ACT Venture Capital, Mitsui & Co Venture Partners, Fountain Healthcare Partners and Enterprise Ireland all of whom remain enthusiastic on the opportunity that Cappella represents in the next generation technologies to treat heart disease.
About Kreos Capital Limited
Kreos Capital is Europe's largest and leading provider of specialty finance to growth companies from early- to late-stage. Since 1998, as the first provider of this kind of financing dedicated to early- to late-stage companies across Europe and Israel, Kreos has adapted the experience of the US model to the European market. Having completed over 250 transactions and committing over $1 billion in 15 countries across Europe and in Israel, Kreos has a proven track record of helping portfolio companies grow throughout their business cycle whilst supporting the objectives of both the portfolio company and their equity sponsors.
About Silicon Valley Bank
Silicon Valley Bank provides commercial banking services to emerging growth and mature companies in the technology, life science, private equity and premium wine industries. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients’ success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 26 U.S. offices and five international operations. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB), along with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at www.svb.com.