Arthrosurface Raises $4 Million

Arthrosurface Inc., a Franklin, Mass.-based developer of joint resurfacing systems, has raised approximately $4 million in Series F funding. Return backers include Boston Millennia Partners. Arthrosurface has now raised around $31 million in private equity.

PRESS RELEASE

Arthrosurface, Inc. (http://www.arthrosurface.com/), the developer of less-invasive joint resurfacing systems, has announced that it has raised approximately $4 million in its latest Preferred Stock Series F equity financing. Funded by Boston Millennia Partners and private investors, to date, the company has raised approximately $31 million of equity capital. “The Series F funding is earmarked to support our new product launches, expansion of the company's direct field sales team and to provide ongoing working capital,” said Steve Ek, COO. “We now have greater resources to provide for the people and working capital to support the continued growth of the business.”

Arthrosurface is entering its fourth year of commercial launch with approximately 7,000 devices implanted by more than 2,000 surgeon users in the various joint applications of the HemiCAP(R) system. Last year, US implant sales were up 55% with strong growth across all key product lines. In particular, sales of the company's first US knee device, the Patello-Femoral HemiCAP(R), grew 237% year on year. “We have found that within the first year of clinical launch, implanting surgeons closely monitor patient progress and, once they have confirmed positive results, sales begin to rise significantly. An excellent example of this was our great toe product. Cases went from a few hundred in the first year to thousands within two years. We expect similar adoption with the release of our new products,” commented company president Steve Tallarida.

The company's HemiCAP(R) systems consist of a range of contoured articular prosthetics and instrumentation intended for the repair of significant lesions and cartilage damage in the major joints. Arthrosurface continues to grow its line of shoulder, great toe, patello-femoral and hip products in the US. These same products are sold in Europe in addition to its knee femoral condyle and talar dome devices.

The HemiCAP(R) system provides a less invasive alternative servicing the joint reconstruction market with its resurfacing systems. “We believe there is a growing body of patients that have damaged cartilage seeking medical options that will enable them to maintain their active lifestyles. These patients will consider surgical treatment provided that recovery is relatively easy and their future medical options remain open. We believe that this is the new Millennium Patient(TM),” said Lester Fehr, VP Sales & Marketing. “Today's patient is a more demanding and educated consumer. For Arthrosurface, we believe that this is our patient.”