X-Technologies has secured $12 million at a post-money company value of $54 million, in a second financing round.
The company has developed an X-ray radiation catheter to treat and prevent restenosis, a condition involving diminishing arterial diameter following angioplasty. The catheter radiates the angioplasty site using a millimeter scale X-ray tube delivered into the artery. Some two million cardiac catheterizations are done annually worldwide. X-Technologies believes that it can achieve a 30% segment of this market.
The company is planning a third financing round in 2002, said X-Technologies CEO Guy Shinar, hoping to raise $7 million. The proceeds will be used to launch products in the American market.
Following clinical product trials the company awaits CE Mark approval from the European Union to start marketing the product, hopefully in December. The CE Mark is the official marking required for manufacturing electric, electronic, and medical devices in EU nations.
X-Technologies has received the approval of the U.S. Food & Drug Administration investigational device exemption (IDE) to commence clinical trials in the United States. The firm has recently completed the first phase of these trials, in the course of which its product was tried on 50 patients. The majority of the patients were from at Lenox Hill medical center in New York.
X-Technologies was founded in 1999 by private investors from the United States and Israel. The team, which includes engineers and managers, has years of experience in developing catheters. Its manufacturing facility is located in Tustin, California. X-Technologies, which employs 24 people, maintains offices in New York and Rehovot.