Vertos Medical Completes Series E Round of Financing

Aliso Viejo, Calif.-based Vertos Medical Inc. has closed nearly $23 million in Series E financing. The proceeds will be used to fund U.S. commercial expansion and the launch of the company’s Mild procedure, an outpatient procedure for patients with lumbar spinal stenosis (LSS), in European markets.

The financing was led by Pitango Venture Capital and joined by existing investors including ONSET Ventures, CHL Medical Partners, Foundation Medical Partners, Mercury Fund and Aweida Venture Partners.

“We are pleased to partner with Pitango, an experienced investor with global presence, and we are fortunate to have the ongoing commitment and confidence of our existing investors,” said James Corbett, Vertos’ president and CEO.

The recent financing will support continued growth in the adoption of Mild. Mild is a minimally invasive procedure that is performed through an incision approximately the size of a baby aspirin, and does not require general anesthesia, implants or stitches, according to the company. The goal of the procedure is to help patients with LSS walk farther with less pain. The proprietary device kit received 510(k) clearance from the U.S. Food and Drug Administration in 2008. Mild has been the subject of 11 clinical trials and has been featured in 16 peer-reviewed clinical journal articles.

“We have an extraordinary opportunity to address a frequent and often debilitating condition with a low-cost, efficacious outpatient procedure,” Corbett added. “We intend to build on current momentum and continue our efforts to provide Mild as a new treatment option for LSS patients and establish it as a standard of care.”

LSS is primarily a degenerative, age-related narrowing of the lower spinal canal that causes pressure on the nerves, leading to pain and reduced mobility. It is a common condition, with more than 1.2 million Americans diagnosed and in active treatment each year. Onset generally occurs after age 50 and nearly 8 percent of the U.S. population is affected by this condition. These statistics present a large and growing market for innovative, low-cost procedures like Mild. Currently, patients have a variety of treatment options ranging from physical therapy to open back surgery. Mild is in the mid-range of treatment options, being surgical, but minimally invasive.

Vertos Medical makes technology for the treatment of LSS.