– USA, CA – Axonics Modulation Technologies, Inc., developer of miniaturised implantable Sacral Neuromodulation technology, announced today that it has completed a $38.5 million Series B financing. Proceeds from the financing will be used to conduct a multi-center clinical study in Overactive Bladder patients anticipated to begin in early 2016 in Europe and North America.
Sacral Neuromodulation therapy is FDA-approved and has been proven to be safe and effective for patients suffering from various chronic conditions, including Overactive Bladder, Fecal Incontinence and Urinary Retention. These conditions affect over 100 million adults in the world.
New investors Advent Life Sciences, based in London, and Cormorant Asset Management, based in Boston, joined the existing syndicate led by Edmond de Rothschild Investment Partners of Paris, France. Existing investors NeoMed Management, based in Geneva, Beijing-based Legend Capital, a venture capital arm of Legend Holdings, Ltd., Valencia, CA-based The Alfred E. Mann Foundation and a select group of private individuals also participated. Since inception in late 2013, Axonics has raised a total of $59 million in capital.
Raymond W. Cohen, Chief Executive Officer of Axonics, said, “We appreciate that this group of world-class investors recognizes the quality work done by Axonics to create a state-of-the-art rechargeable implantable Sacral Neuromodulation (SNM) System. The Axonics device is 60 percent smaller than the only other marketed SNM device and also the first rechargeable device available for this market. Moreover, our implanted pulse generator promises to last over 15 years in the body – three times longer than the other SNM device on the market today. Revenue from the sale of SNM devices is estimated to be approaching $600 million annually with nearly 30,000 devices implanted in patients in 2014 alone. Revenue for this market is projected to grow to over $1 billion by 2019. With only one player in the SNM market today, this represents a significant opportunity for Axonics stakeholders and patients alike.”
Shahzad Malik, M.D., of Advent Life Sciences, will join the Axonics Board of Directors serving alongside Chairman Raphaël Wisniewski of Edmond de Rothschild Investment Partners and other directors including Erik Amble of NeoMed, Darren Cai of Legend, John Petrovich and Barry Keenan of The Alfred E. Mann Foundation and Axonics CEO Raymond W. Cohen.
About Overactive Bladder Syndrome (OAB) and Fecal Incontinence (FI)
OAB is a chronic medical condition that significantly affects patients’ quality of life and often persists for many years. It is estimated that 85 million patients in Europe and the US suffer from OAB and another 40 million suffer from FI. OAB costs an estimated $65 billion every year to the US alone, including direct and indirect costs for physician visits, surgery, nursing home care, incontinence pads, drug therapy, comorbidities and lost productivity. OAB significantly affects quality of life, frequently resulting in depression, social isolation, comorbidities and significant life-style alteration. It is reported that over 3 million people are refractory to drugs and seek third line treatment options.
Fecal Incontinence costs an estimated $75 billion every year to the US, including direct and indirect costs. FI is also a primary cause for institutionalization concerning up to 50 percent of nursing home patients. An estimated 2 million patients seek advanced treatment options.
About Sacral Neuromodulation (SNM)
SNM, which is an FDA-approved therapy to treat urinary and fecal dysfunction, is an implantable device-based treatment that delivers adjustable electrical stimulation to a target area of the sacral nerve. After behavioral interventions and medications as first- and second-line treatments, respectively, SNM (also called sacral nerve stimulation) has emerged as a guideline-recommended third-line treatment for Overactive Bladder. A significant body of evidence demonstrates that patients treated with SNM have therapeutic success and sustained relief of symptoms and improvement in quality of life.
The American Urological Association recommends SNM for OAB patients who have not responded to second-line treatment (drugs). SNM is recommended by the American College of Gastroenterology for FI patients who have not responded to conservative treatment. SNM benefits from broad reimbursement coverage in the US and Europe.
About Axonics Modulation Technologies, Inc.
Axonics, based in Irvine, CA, is a privately held venture-backed pre-revenue company that has developed a novel implantable neuromodulation technology. The Company was founded in October 2013 based on a license to numerous fields of use from the Alfred E. Mann Foundation of 19 issued patents directed toward neuromodulation technology.
About Advent Life Sciences
Advent Life Sciences founds and invests in early- and mid-stage life sciences companies that have a first- or best-in-class approach to unmet medical needs. The investing team consists of 16 professionals, each with extensive scientific, medical and operational experience, a long-standing record of entrepreneurial and investment success in the US and Europe, and is particularly focused on supporting entrepreneurs and founders to take innovative new medical entities from concept to approval. The Firm invests in a range of sectors within life sciences, principally drug discovery, enabling technologies and med tech, always with an emphasis on innovative, paradigm-changing approaches. Advent Life Sciences has a presence in the UK, US and France.
About the Alfred E. Mann Foundation
Founded in 1985 by serial healthcare entrepreneur Alfred E. Mann, AMF is a non-profit medical research organization whose mission it is to bring advanced medical technologies to the public. AMF has developed a myriad of medical devices that have changed the lives of patients across the globe, including cochlear implants that enable deaf people to hear, implantable myoelectric sensors that enable amputees to control robotic prosthetics with their thoughts alone, several diabetes products as well as numerous products in the neural space for management of pain and the recovery of lost muscle function.
About Cormorant Asset Management
Boston-based Cormorant Asset Management is a biotech focused investment firm that was founded in 2013. With over $800 million in assets under management, Cormorant invests in both public and private companies in the biopharmaceutical, medical device and life science research tool fields. Cormorant looks to participate in financings that will enable the company to achieve their first key proof of concept and thereafter allow the company to attract growth capital. In both public and private companies, Cormorant supports innovation that will in the long run add great value to patient lives and healthcare system.
About Edmond de Rothschild Investment Partners
Paris-based Edmond de Rothschild Investment Partners is a leading investor in minority investments into privately owned companies. Affiliate of the Edmond de Rothschild Group, the fund management employs 41 employees and has approximately €1.3 billion under management. Its life sciences team of nine professionals brings together over 60 years of experience in the life science industry and more than 100 years of private equity and venture capital experience. The team has raised more than €450 million through its Biodiscovery franchise and is currently completing the investment of BioDiscovery 4 fund. Since their inception, BioDiscovery Funds have invested in 53 privately held companies, of which 15 have been sold and 14 listed on public financial markets, while 21 are active in the portfolios. BioDiscovery Funds, including BioDiscovery 4, are venture capital funds dedicated to professional investors. These funds are not authorized by the Autorité des Marchés Financiers and may adopt special investment rules.
About Legend Capital
Legend Capital, based in Beijing, China, focuses on early and expansion-stage venture capital investments with 20 partners managing five USD funds and two RMB funds with over $2 billion focused on innovation and growth enterprises primarily related to China. Legend Capital has invested in nearly 200 companies, of which 23 are already listed on the NYSE, NASDAQ, HKEx, Gretai Securities Market, Shanghai Stock Exchange, GEM and ChiNext of Shenzhen Stock Exchange, with an additional 13 exits through trade-sale. In the Healthcare and Life science sector, Legend Capital has invested in over 20 companies in recent years with outstanding growth trajectory in China and/or a clear China market entry strategy.
About NeoMed Management
NeoMed Management is an international investment firm registered in Jersey, Channel Islands, with total capital under management in excess of $300 million that focuses exclusively on the healthcare products industry. NeoMed invests in all stages of development from start-up to later stage growth. Since inception in 1997, NeoMed has successfully invested in more than 40 innovative European and North American companies with outstanding growth prospects.
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