Durham, North Carolina-based Bioventus Inc. has announced a minority investment in Denver, Colorado-based Vaporox, Inc.
Founded in 2016, Vaporox is focused on commercializing its Vaporous Hyperoxia Therapy (VHT™). VHT is a patented technology for the treatment of seven types of skin wounds, including diabetic foot ulcers and bed sores. VHT has U.S. Food and Drug Administration 510(k) clearance and, per the press release, “has demonstrated the ability to heal approximately 85% of DFUs [diabetic foot ulcers] that were unresponsive to the current standard of care.”
Founded in 2012, Bioventus develops solutions for active healing and surgical orthobiologics. Its products include restorative therapies, bone graft substitutes, pain treatments, and solutions for joint preservation. Per the Bioventus website, Exogen®, its ultrasound bone healing system, “stimulates the body’s natural healing process, helping fractured bones mend.”
OTW discussed the investment with Bioventus CEO Ken Reali and asked about the company’s initial interest in Vaporox. Reali told OTW, “We have a strong adjacency in the diabetic foot ulcer area as many of our Exogen fracture treatment customers (primarily foot/ankle orthopedic surgeons and podiatric surgeons) also treat diabetic foot ulcers, so we see significant synergy.”
VHT technology utilizes ultrasonic waves to help with healing. Per the Vaporox LinkedIn, “VHT employs ultrasonic waves to create microscopic particles composed of water and an anti-microbial. It then cyclically delivers those particles and oxygen-enriched air to the treatment site, where they penetrate into the recesses of the skin or wound, and ultimately through cell walls.”
VHT technology helped set Vaporox apart from its competitors. Reali informed OTW, “The clinical data and the mechanism of action offer a strong differentiation. There is also established reimbursement for the technologies utilization for diabetic foot ulcer treatment.”
In conjunction with the investment, the companies also announced that Bioventus Senior Vice President of Business Development and Strategy Chris Yamamoto will now serve on the Vaporox board of directors. Yamamoto commented, “The investment in Vaporox represents an attractive valuation entry point and allows us to take a phased approach to a potential acquisition.”
Yamamoto continued, “We see a significant opportunity ahead of Bioventus to consolidate highly strategic assets that we expect will ultimately drive accretive revenue growth to our business.”
The investment terms were not disclosed and “the transaction is not material to Bioventus.”
