There is likely a bit of merriment at Rotation Medical these days. The company, which recently received 510(k) clearance from the FDA for its implantable bioinductive implant technology, is reporting that it has received an investment of $27.2 million. Life Sciences Partners (LSP), a new investor, and New Enterprise Associates (NEA) co-led the financing, which also included new investor Pappas Ventures and others. In addition, Rotation is welcoming Fouad Azzam, Ph.D., from LSP and Scott Weiner from Pappas Ventures, who will join the company’s Medical Board of Directors.
“Rotation Medical’s technology has the potential to significantly advance current approaches to the treatment of rotator cuff disease—an area for which there is clearly an unmet clinical need, ” noted Dr. Fouad Azzam, General Partner at LSP, in the July 1, 2014 news release. “In an environment that increasingly puts a premium on health care efficiency and effectiveness, we think Rotation Medical’s technology and team are particularly well positioned to succeed.”
Rotation Medical indicates that it has its eye on the problem of poor quality of the underlying tendon tissue, indicating that a large number of repaired tendons deteriorate over time and become prone to re-tears. Thus, they have designed their bioinductive implant to address this limitation by inducing new tissue growth at the site of implantation, resulting in increased tendon thickness and healing of tendon defects with new tissue growth. The Rotation Medical rotator cuff system is comprised of a proprietary bioinductive implant and disposable instruments that allow for both mini-open and arthroscopic procedures.
“The support of this highly experienced investor base validates the significant opportunity to advance care of patients suffering from rotator cuff disease with the Rotation Medical technology, ” said Martha Shadan, company CEO and president. “We are thrilled to be working with financial partners with such deep domain experience in the life sciences and healthcare and look forward to introducing our technology to clinicians in the next few weeks.”
Shadan told OTW, “We plan to initiate a limited launch in the U.S. later this month (July) working with a select group of physicians, with a broader U.S. commercial release in the beginning of 2015. In addition, we expect to file for CE mark this year.”
“Post market studies will further advance data showing the bioinductive nature of the Rotation Medical implant. The study will build on prior data collected in Australia showing that the Rotation Medical technology could heal the tendon through the induction of new tendon-like tissue, and fill in defects in partial tears. The company will work with multiple sites and physicians across the U.S. to study both partial and full thickness tears. We anticipate that all sites will begin enrolling patients this year and aim to complete the study by the middle of 2015.”
