Endosense raises USD 36 million in Series B financing

Sep 1 2009

Endosense, a medical technology company focused on improving the efficacy, safety and reproducibility of catheter ablation for the treatment of cardiac arrhythmias, has announced that it has received USD 36 million in Series B financing. Edmond de Rothschild Investment Partners (EdRIP) led the round, with additional participation from Neomed, Gimv, VI Partners (VI), Sectoral Asset Management, Ysios Capital Partners and Initiative Capital Romandie. The financing will primarily be used to fund the European commercialization and U.S. Premarket Approval (PMA) clinical study of the company’s proprietary force-sensing ablation catheter, the TactiCath^®.

“We believe that Endosense’s TactiCath is uniquely positioned to greatly improve the treatment of cardiac arrhythmias, a series of life-threatening disorders that affect millions of patients worldwide,” said Dr. Olivier Litzka, partner at EdRIP. “Ablation is one of the highest-growth markets in the cardiovascular space. Force measurement during the ablation procedure has become a prime object of interest to improve safety and efficacy for patients. As Endosense with its proprietary force-sensing technology is the clear leader in this field, this represents an excellent investment opportunity to us.”

As part of the Series B activity, Endosense has made several board appointments to reflect its new shareholder mix. EdRIP Partner Olivier Litzka, Gimv Executive Vice President Life Sciences Patrick van Beneden and VI Partner Diego Braguglia have become directors.

“This $36 million financing is a major achievement for Endosense,” said Eric Le Royer, president and chief executive officer, Endosense. “We believe this investment speaks to the potential of our force-sensing technology and the tremendous clinical value it is anticipated to provide to physicians and patients.”

Granted the CE mark in May 2009, Endosense’s TactiCath is the first and only force-sensing ablation catheter to give physicians a real-time, objective measure of contact force during the catheter ablation procedure. It has undergone considerable pre-clinical and clinical testing, the results of which have created a solid foundation of evidence supporting the feasibility, safety and value of contact force sensing during catheter ablation.

The TactiCath has the potential to improve the effectiveness, safety and reproducibility of catheter ablation treatment of cardiac rhythm disorders, including atrial fibrillation (AF). AF is the most common cardiac rhythm disorder today, affecting more than six million people worldwide. Currently, most AF patients are treated with pharmaceutical drugs that do not address the underlying cause and have side effects, with invasive ablation surgery as the primary treatment alternative. Endosense is focused on providing this sizeable patient population with a minimally invasive treatment option that is both safe and effective. The overall market for AF treatments represents a multi-billion dollar opportunity. The current worldwide market for catheter ablation is valued at more than 500 million dollars. The atrial fibrillation ablation market has been growing at a rate of over 50 percent for the past five years. Double-digit market growth is expected to continue for the next five to 10 years, driven by an aging population and safer, more effective and more widely performed ablation procedures.