Active Implants Completes First Part of Funding Round

Active Implants LLC recently close the first tranche of $8.7 million in new funding of a total commitment of $26 million, company officials reported.

Memphis, Tenn.-based Active Implants makes cushion-bearing orthopedics using its proprietary NUsurface meniscus implant.

The new round of financing was led by View Capital RIA, L.P. of Dallas, Texas, and River Street Management in Memphis. Proceeds will be used to fund completion of a multi-center clinical trial on the NUsurface meniscus implant, which is currently enrolling patients in Europe and Israel, and initiate a randomized clinical trial to support application for U.S. regulatory approval.

“The NUsurface meniscus implant is designed to fill a significant treatment gap between non-operative care and knee replacement surgery,” said Elliott Hershman, M.D., chairman of the Department of Orthopaedics at Lenox Hill Hospital in New York, N.Y., who also has served as the chief medical advisor for Active Implants. “The NUsurface meniscus Implant is a novel, composite polymer implant which is used to treat knee patients who have pain and disability arising from osteoarthritis caused by a previous meniscectomy, meniscus dysfunction or insufficiency.”

According to Hershman, the NUsurface implant was designed for patients too old for meniscus repair and too young for a total knee replacement.

“Clinical studies outside the United States have demonstrated the superiority of our NUsurface meniscus implant over current standard-of-care treatments,” said Henry Klyce, chairman and CEO of Active Implants. “The NUsurface meniscus implant is designed to fill a significant treatment gap between non-operative care and knee replacement surgery.”

Active Implants estimates the potential worldwide market for its device to be in excess of $2 billion annually.

Active Implants has been working with knee sports medicine surgeons in Europe and Israel on a prospective controlled, multi-center trial.

Peter Verdonk, M.D., Ph.D., from Orthopaedic Center Monica Hospitals Antwerp and the University of Ghent, Belgium, has enrolled patients in the study for two years.

“I am impressed with the results observed to date and believe this technology could represent a new method of treating patients with meniscus problems who are often on a long and painful progression to knee replacement,” Verdonk said.

In addition to Memphis, the company has additional offices in Driebergen, the Netherlands, and Netanya, Israel.