TEL-AVIV, Israel, September 28, 2017 /PRNewswire/ --
Magenta Medical, a medical device
company in the field of transcatheter heart failure therapy,
announced today the successful closing of its $15M series B financing round. The syndicate of
investors is comprised of Abiomed Inc., a leader in transcatheter
heart pumps, Pitango Venture Capital, among Israel's leading venture capital groups, JAFCO
Co., Ltd., Japan's leading venture
capital firm, and a group of industry luminaries and cardiovascular
experts led by Prof. Jacques Seguin
- a cardiac surgeon and a prolific inventor and entrepreneur. Among
others, Prof. Seguin founded CoreValve Inc. and led its acquisition
by Medtronic Inc. for over $800
million in 2009. Following the closing, he is joining
Magenta's Board of Directors.
Founded in October, 2012 by Prof. Ehud
Schwammenthal and Mr. Yosi
Tuval, Magenta Medical is developing novel therapeutic
approaches to the management and treatment of Acute Heart
Failure.
Prof. Schwammenthal, a cardiologist, and Mr. Tuval, a mechanical
engineer, were also the founders of Ventor Technologies, a former
Pitango portfolio company that developed an innovative
catheter-based system for the minimally invasive replacement of the
aortic valve. Ventor was acquired for $325
million by Medtronic Inc. in 2009.
Heart failure has been recognized as an epidemic in the Western
World, afflicting approximately 6.5 million people in the U.S.
alone, with 960,000 new cases diagnosed annually. There are over
one million hospitalizations per year in the U.S. with a primary
diagnosis of heart failure (AHA, 2017). More than 90% of all
hospital admissions in acute heart failure are caused by
congestion, i.e. fluid retention that elevates systemic venous
pressure and burdens the heart and the kidneys. Diuretics, the
mainstay of therapy in these patients, fall short, as evidenced by
the high rates of deteriorating kidney function and hospital
readmission. Magenta offers a catheter-based therapy aimed at
managing congestion through faster and safer fluid and salt
removal, while protecting and potentiating kidney function.
The economic burden of heart failure is large and rapidly
growing, with an estimated annual cost to the U.S. economy of over
$30.7 billion in 2012. This amount is
expected to reach a staggering $69.7
billion by 2030 (AHA, 2017).
Prof. Ehud Schwammenthal,
Magenta's Co-founder and Chief Medical Officer: "Since its
inception, Magenta has made great progress and was able to bring
its first product into clinical trials in Europe. The current funding will allow us to
expand and accelerate the clinical program on the path to approval
in Europe and a pivotal study in
the U.S. With the company's growth and my increased focus on the
medical and clinical aspects of the operation, we as founders
decided to extend an offer to our chairman, Dr. David Israeli, to serve as CEO of the company.
We are delighted that David accepted and we look forward to a
continued fruitful partnership".
Dr. David Israeli, newly
appointed CEO: "Having witnessed the progress of Magenta's exciting
technology as its Chairman of the Board, I was delighted to accept
the role of CEO at Magenta Medical. Together with Prof.
Schwammenthal and Mr. Tuval, both with a proven track record as
medical device entrepreneurs, we aim to position Magenta as a
groundbreaking company in the treatment of Acute Heart
Failure".
About Abiomed Inc.
Based in Danvers, Massachusetts,
ABIOMED, Inc. is a leading provider of medical devices that provide
circulatory support. Our products are designed to enable the heart
to rest by improving blood flow and/or performing the pumping of
the heart. For additional information please visit:
http://www.abiomed.com.
About JAFCO Co., Ltd.
(http://www.jafco.co.jp)
JAFCO Co., Ltd., is Japan's
leading venture capital and buyout firm, founded in 1973. It
operates a series of funds to channel risk capital to seed and
early stage companies mainly in Japan, US, China, Taiwan, Korea, India, and Singapore. Targeting high-potential companies
with innovative and creative management strategies, JAFCO provides
support for enhancing corporate value and expanding business
through deep involvement in management. Funds under management
currently total ¥434.8 billion on a commitment basis as of
March 31, 2017.
About Pitango Venture Capital
(http://www.pitango.com)
Pitango has been investing in technology ventures since 1993 and
now has more than $2 billion under
management. With offices in Israel
and NYC, Pitango has invested in more than 250 companies to date,
among them companies that have gone public or have been acquired
such as Varonis (NASDAQ: VRNS), Skycure, acquired by Symantec
(NASDAQ: SYMC), Check (acquired by Intuit), Borderfree (NASDAQ:
BRDR), acquired by Pitney Bowse, Anobit, acquired by Apple (NASDAQ:
AAPL), superDimension, acquired by Covidien, Aeroscout, acquired by
Stanley Healthcare Solutions.
Pitango invests via two parallel funds, Pitango Early Stage and
Pitango Growth, in Israeli tech and healthcare companies.
Learn more at: pitango.com.
About Magenta Medical
Founded in October, 2012, Magenta Medical Ltd. is a privately held
company that is engaged in the development of novel device
solutions for the treatment of acute heart failure. Learn more at:
http://magentamed.com.
Media Contact:
Sharon Erde
+972-54-4848-617
sharon.e@pitango.com
SOURCE Magenta Medical