September 13, 2016
Promimic raises SEK23.8 million to establish operations in the US to drive commercial activities around its novel HAnano Surface medical implant coating technology
GOTHENBURG, SWEDEN September 13, 2016 Promimic AB, an innovative biomaterials company, today announced that it has secured SEK 23.8 million (US$3.2 million) in a new share issue to finance the establishment of its commercial operations in the US, the world’s largest market for medical implants. Chalmers Ventures, one of Sweden’s most prolific investors in innovative businesses, participated as a new investor alongside existing investors Karolinska Development and Almi Invest.
The new operation will be based in Austin, Texas and will be led by the company’s CEO Ulf Brogren, with the aim of building up a regional sales team targeting the US orthopedic and dental implant markets with novel products enhanced with Promimic’s HAnano Surface coating technology. Production and development will remain in Gothenburg, where the company is a part of AstraZeneca's Bio Venture Hub.
The company already has the first approval from the US Food & Drug Administration (FDA) for a dental implant using HAnano Surface, and has a spinal implant using HAnanoSurface under review . Further product opportunities are being developed and expected to be launched into the US market in the coming years.
Promimic develops and markets a unique surface technology for medical implants (orthopaedic and dental) called HAnano Surface, which increases their anchoring strength and integration with surrounding bone tissue. The HAnano Surface has been evaluated in both in vitro and in vivo studies, which have shown that it can reduce healing times. HAnano Surface is nanometer thin and designed to improve the hydrophilicity of the implant, which increases the possibility for bone cells to attach to the surface, while helping to preserve the micro-structure of the implant and eliminating the risk of cracks in the coating.
"We are excited to have advanced to the point where we can build our presence in the US. We have seen increasing interest from the orthopedic industry and medical professionals in the US in our HAnano Surface technology and the clinical benefits that it can deliver. We view the US as a key driver to our future growth and are pleased to close this new financing, which will allow us to make this important step forward," says Ulf Brogren, CEO of Promimic AB. "We are very pleased to get Chalmers Ventures as a new investor, and at the same time comforted to get the trust from existing shareholders to take this important step and expand the business."
Promimic has made significant progress during the past 12 months: its partner Sistema de Implante Nacional (S.I.N), a leading provider of dental implants in Brazil, launched its first product using Promimic’s HAnano Surface technology in Brazil in January 2016; and the companies are engaged in an extensive pre-clinical and clinical development program for enhanced dental implants.
"Promimic is one of our most promising portfolio companies, and is exhibiting very strong potential and progress. The company's cutting-edge implant nano-coating technology is already established in the dental industry and we believe it has significant potential to enhance the integration capabilities of orthopedic implants too. We look forward with confidence to the company's continued expansion," says Håkan Krook, Fund Manager at Chalmers Ventures
Victor Drvota, Chief Investment Officer at Karolinska Development, adds: "It is pleasing to see that Chalmers, as an early investor, has chosen to lead this expansion-oriented financing round mainly aimed at strengthening the company's international efforts."
"Promimic has during the past year proved themselves with the launch in Brazil of its HAnano Surface coated dental implant and it has secured its first customers in the US,” says Patrik Sjöstrand, Investment Manager at Almi Invest. "The market for the company's technology is strong in the US and it is therefore a natural step forward to fully exploit this potential with the establishment of a dedicated US commercial operation."