FREMONT – Moximed, a medical device company on a mission to improve the standard of care for people with knee osteoarthritis (OA), has closed on $61 million of Series D preferred stock financing with an option to close on up to an additional $30 million. The round was led by Elevage Medical Technologies, a Patient Square Capital platform, with participation from new investors Cormorant Asset Management and Warren Point Capital and existing investors New Enterprise Associates (NEA), Future Fund, Advent Life Sciences, Gilde Healthcare, Vertex Ventures HC, GBS Venture Partners, and Morgenthaler Ventures.
Proceeds from the financing will be used to accelerate U.S. commercialization of Moximed’s MISHA® Knee System, the world’s first implantable shock absorber (ISA) for knee osteoarthritis. OA is a common, debilitating condition, affecting the lives of over 32 million adults in the U.S, and projected to impact 70 million Americans by 2040.
Moximed utilized the clinically established benefits of weight load reduction on diseased joints to design and develop the MISHA Knee System, which is dedicated to helping people with mild-to-moderate OA preserve their knee joints while enjoying active lives. Implanted during an outpatient procedure, the MISHA Knee System has been shown to alleviate pain, improve function, and delay the need for total knee replacement in some patients.
“This financing is validation of the significant market opportunity for the MISHA Knee System,” said Chris Gleason, President and Chief Executive Officer of Moximed. “We are seeing tremendous interest from surgeons and patients, and we are excited to rapidly expand our commercial infrastructure to address evolving patient needs in this growing market.”
As part of the financing, Michael Wasserman, Ph.D., of Elevage Medical will join Moximed’s Board of Directors. Prior to Elevage, Dr. Wasserman served as Managing Partner of Maverix Private Equity and spent 17 years at H.I.G. Capital. Dr. Wasserman has served on the boards of numerous growth-stage businesses including HyperBranch Medical Technologies (Stryker), NeuWave Medical (Johnson & Johnson), and VertiFlex (Boston Scientific). “Elevage is thrilled to partner with Moximed as it continues to generate commercial momentum,” stated Wasserman. “The size of Moximed’s market opportunity, the product differentiation, and its clinical value proposition are highly compelling attributes. We are pleased that our investment will help fuel significant expansion of the Moximed business and positively impact the lives of countless patients.”
“A medical device financing of this magnitude is a strong vote of confidence in this competitive funding environment,” said James Leech, Chief Financial and Strategy Officer of Moximed. “Our unique market opportunity, technology, and high caliber team enabled us to attract blue-chip investors in this important financing. We look forward to using these proceeds to expand patient and surgeon access to our breakthrough technology.”
“I am extremely proud of the Moximed team for taking the next steps in delivering a highly impactful product that addresses a significant clinical need for a large number of people,” noted Josh Makower, M.D., Co-founder and Chairman of the Board of Directors of Moximed. “The MISHA Knee System has the potential to help millions of patients suffering from medial knee OA who are not ready for joint replacement.”
