Saluda Medical Pty Limited an Australia-based med-tech company will be receiving an equity financing round of close to $40 million. The funding will come from Medtronic plc. Ordinary Shares (NYSE:MDT), which has joined GlaxoSmithKline plc (ADR)(NYSE:GSK)’s efforts of investing in companies developing bioelectronic medicines. The company is responsible for developing an implantable medical device, which treats chronic back pain.
The company is striving to distinguish itself from the many competing products in the market today. Two years ago it expanded its operations into the United States setting up a seven-employee clinical research firm in Bloomington, Minn.
This latest round of funding will support the U.S. clinical trial
According to John Parker, Saluda’s Chief Executive Officer, the company is making swift progress towards regulatory and commercial milestones. It has been receiving massive support from investors in the development of new approaches, which are expected to offer relief to patients suffering from chronic pain and other disorders.
That said, the recent round of funding will go into the enhancement of the current U.S. pivotal randomized, double-blinded clinical trial. Registering of patients is underway across the 11 sites in the country. The financing will also propel the commercialization of the Evoke SCS therapy in Europe and Australia once it is approved.
Juan-Pablo Mas from Action Potential Venture Capital, which is a venture arm of GlaxoSmithKline says, “We are encouraged by the international clinical results to date, and believe Saluda’s technology can potentially provide various clinical benefits to patients.”
Medtronic long-term focus on Research and development
For a very long time, Medtronic has been eying the development of technology, which can aid in sensing and respond to brain activity. The company is already selling neurostimulators, which can treat pain and other conditions. It is now working on a project of building a so-called “brain radio.”
Meanwhile, Saluda Medical Senior Vice President Dan Brounstein outlines that with all the support they are receiving, they have plans to expand the Twin Cities operation. In the meantime, Medtronic’s stock closed at $84.86 a fall of $0.23 or 0.27%.
