ZipLine® Medical Closes $4.3 Million Series C Financing Round Led by New Investor, RA Capital Management
ZipLine® Medical closes $4.3 million Series “C” financing round led by new investor, RA Capital Management
Financing comes on the heels of clinical study showing that ZipLine produces suture-like outcomes with significant surgical time-savings
CAMBELL, Calif., Jan. 21, 2014—ZipLine Medical announced today that it has closed a Series C financing round in the amount of $4.3 million. The round was led by new investor RA Capital Management LLC, a Boston-based healthcare crossover fund that invests in development-stage private and public drug, medical device, and diagnostic companies. The financing round included participation from existing investors XSeed Capital (Portola Valley, CA) and Claremont Creek Ventures (Oakland, CA). Proceeds from the Series “C” financing will be used to expand sales and marketing efforts.
“The most remarkable breakthroughs are obvious and elegant. For closing a surgical wound, ZipLine offers the cosmetic outcomes of a good suturing and the simplicity and speed of stapling, so doctors and patients are happy. Anyone can apply it to the patient, not just a surgeon, and the patient can take it off like a band-aid once the healing is done instead of going back in for another expensive medical visit to have staples or sutures removed, so payors are happy. ZipLine has done its part to bring great value to our healthcare system. It’s that vision that we are proud to support with our recent investment,” said Peter Kolchinsky, PhD, Managing Director for RA Capital Management, LLC.
“We are extremely pleased to see our breakthrough Zip™ product being validated by leading investors and key opinion leaders among clinicians,” added John Tighe, President and CEO of ZipLine Medical.
The cash infusion comes on the heels of preliminary clinical study results from a randomized, controlled, prospective clinical study comparing the ZipLine Surgical Skin Closure product to traditional stitches for skin cancer excision; these results were presented at the 16th Annual Mount Sinai Winter Symposium on Advances in Medical and Surgical Dermatology, which took place Dec. 6-8, 2013, in New York.
“In the study, the ZipLine device produced similar cosmetic outcomes to a traditional suture closure while significantly reducing the treatment time, which can in turn reduce the overall cost of the procedure. In addition, since with the ZipLine there are no sutures to remove, this limited the need for immediate patient return, which can benefit both the patient and clinic. The patient can instead return later when the wound is more healed,” said Hooman Khorasani, M.D., Chief of the Division of Mohs, Reconstructive and Cosmetic Surgery at Mount Sinai School of Medicine and principal investigator for the study. The preliminary data suggested a 57% reduction in wound closure procedure time when using the ZipLine device instead of sutures.
ZipLine Medical (www.zipinemedical.com), headquartered in Campbell, Calif., is an emerging medical device company developing cost-effective, noninvasive surgical skin closure devices for suture-like outcomes at the speed of staples. The Company was founded in 2009 by Amir Belson, M.D. Because skin-closure is the common denominator of nearly all surgical procedures, Zip™ Surgical Skin Closure devices have extensive applicability across multiple medical specialties. The Company’s addressable market opportunity is estimated at $4 billion worldwide. Zip™ Surgical Skin Closure devices are classified by the U.S. FDA as ‘Class I, Exempt.’
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Ronald Trahan, APR
508 359 4005, x108