Endius Secures $26.5 Million in Series B Financing

Plainville, MA - Marking one of the largest venture capital investments in a medical device company this year, Endius today announced that it has closed $26.5 million in series B financing. With its Atavi™ Atraumatic Spine Fusion System, Endius plans to transform spine fusion into a one day surgical procedure. The U.S. Food and Drug Administration (FDA) recently cleared a significant enhancement of Atavi that will enable surgeons to treat nearly 80 percent of all patients needing a lumbar spine fusion—a four-fold increase in the system’s immediate market opportunity.

New investors EGS Healthcare Capital Partners and The Carlyle Group co-led this round of funding for Endius, which also included returning investors Morgan Stanley, Advanced Technology Ventures, Capstone Ventures, Dauphin Capital Partners, Hickory Venture Group, Hillman Medical Ventures, Polaris Venture Partners, Senmed Medical Ventures, and Trellis Health Ventures.

Endius will use this infusion of new capital to further accelerate market penetration for Atavi and to educate physicians about its recently broadened clinical utility. Endius will also use the funds to establish leadership in the next phase of spine surgery—where minimally invasive access and delivery capabilities will be critical to the adoption of new spinal treatments, such as artificial discs, as they gain FDA clearance and become more viable surgical options.

“With its strong management team and patented technology platform, Endius is poised to establish leadership and address unmet clinical needs in one of the fastest growing market segments in orthopedics,” said Ryan Schwarz, Principal – Venture Capital, The Carlyle Group. “Atavi is a unique solution for the needs of patients that additionally could prove to offer significant cost-efficiencies to payers. We are pleased to partner with Endius in helping the company to achieve its aggressive growth plans.”

“This funding is testament to Endius’ significant momentum and leadership in lumbar spine fusion surgery, and to the company’s broader potential in the minimally invasive spine surgery market,” said Terry Vance, General Partner, EGS Healthcare Capital Partners. “We are impressed with Endius’ experienced management team and the company’s ability to consistently deliver breakthrough minimally invasive spine fusion solutions to the medical and patient communities.”

The spine surgery products market is the fastest growing segment in orthopedics, currently estimated at $1.8 billion and expected to reach $3.6 billion by 2004. More than one million U.S. patients require surgery for chronic back pain each year. Spine fusion is often recommended for chronic back pain sufferers who have exhausted conventional therapy and conventional surgical treatments. However, traditional open spine fusion is highly traumatic, resulting in severe post-operative pain and lengthy recovery times, as well as significant medical and insurance costs. Atavi enables surgeons to provide less traumatic and potentially more effective treatment for these patients with its minimally invasive spine (MIS) fusion procedures.

“With the Atavi System, spine surgery is already a one-day surgical procedure in my practice,” said Thomas M. Sweeney, M.D., PhD, Sarasota Spine Specialists, Sarasota, FL. “Following minimally invasive treatment with Atavi, most patients have been able to leave the hospital within 24 hours without physical discomfort, which also speeds the process of rehabilitation and full return to normal function. In addition to its current use for lumbar spine fusion, this proven approach may be applicable for a variety of other spinal MIS procedures and we believe that it shows great promise to meet the emerging clinical needs of our fast-changing field.”

“We are gratified that this stellar group of investors has further validated our progress and potential through this substantial investment in Endius at a time when many others are finding funding to be scarce,” said Don Grilli, Chairman and CEO of Endius. “With recent FDA clearances, an aggressive investment in sales and marketing and continued refinement of Atavi, Endius is making minimally invasive spine fusion a more widely accepted and available surgical alternative. We are clearly on course toward achieving our vision of making spine fusion a one-day surgical procedure, and are well positioned to marry our technology with the next generation of spine surgery innovations that will be entering the marketplace. One of the most remarkable aspects of the Atavi technology is that it provides the surgeon all of these capabilities without requiring him or her to abandon proven and comfortable techniques learned during their training. In essence, Atavi enables them to access the spine in a far less invasive and destructive manner.”

If you have any questions please contact us:

Contact:

Lauren Cohen
Endius Inc.
508/643-0983

Chad Castro or Lauren Arnold
Schwartz Communication
781/684-0770