Nexeon MedSystems Inc., a biomedical manufacturing medical devices company, has closed a round of funding to expand manufacturing capacity, laying the groundwork for a commercial product launch. It also announced the U.S. Securities and Exchange Commission has “declared effective” Nexeon’s registration statement on Form 10.
Nexeon is based in Lexington, Kentucky, but its chairman and CEO, Will Rosellini, is a 2013 graduate of the Dallas-based Health Wildcatters startup accelerator.
Dr. Mark Bates originally founded Nexeon in 2005 to address large clinical voids via medtech innovation after he had spent two decades in direct patient care as a leading interventional cardiologist. Nexeon quickly became a vehicle for IP development, which eventually led to the successful launch of multiple commercial medical products. While a portion of the company’s portfolio has remained in-house for development, exits include the sale of an inventory saving system to BioSensors International, the sale of technology related to cell therapy delivery to Cook Medical, and the merger of a spinout focused on coronary and peripheral stent technology with CeloNova Biosciences.
Bates began discussions in 2012 with Rosellini after Rosellini approached Bates to collaborate on a growing need for alternative approaches to the design and delivery systems of bioelectronics devices. Rosellini and Bates decided to merge their efforts in 2015.
The company’s private funding, which totals $4.3 million, will be used to service additional customers and to build commercial product launch infrastructure in Europe.
Nexeon also announced that the SEC declared its Form 10 effective, after filing public-reporting responsibilities on its for 10Q filing on Nov. 16, 2016. This includes the financial information related to Nexeon’s “business, a competitive analysis of corporate strategies, and details of the management team and board of directors.”
Rosellini said the Form 10 process has two immediate benefits.
“One, the financial transparency inherent in being a fully-reporting company will reveal our ongoing commitment to running lean operations and optimizing for our shareholder’s return on equity,” Rosellini said. “Secondly, by avoiding the traditional IPO process, we avoid the risks IPO investors would normally have associated with pricing the offering. IPOs haven’t fared well in recent years, and I’m confident that a slow approach to a registered public offering offers a better opportunity for our existing and new shareholders.”
The company is currently completing the arbitration process in order to assign a trading symbol and begin trading in the OTC Market QB Exchange.
Nexeon MedSystems focuses exclusively on rapid, highly capital-efficient development processes, using proceeds from licensing and non-dilutive grants to finance the riskiest portions of clinical science.