Carticept Medical™ Closes $10 Million Series C Financing Round

Investment to Support Commercialization of its Navigator™ Delivery System

ALPHARETTA, Ga.--()--Carticept Medical, Inc., a developer of innovative products for the treatment of cartilage injuries and osteoarthritis, today announced that it has completed a $10 million round of financing, led by existing investors Domain Associates, New Enterprise Associates and SonoSite, Inc. The financing will provide funding for the commercial launch of the Company’s Navigator™ Delivery System (DS), a computer-controlled drug delivery system that redefines medication delivery by integrating ultrasound guidance to increase the efficiency, accuracy and safety of administering medications for joint pain. Carticept received FDA 510(k) clearance to market the Navigator DS in September 2011, with the full commercial launch slated for Q1 2012. This latest round of financing increases the venture capital investment in Carticept to a combined total of $53 million.

Arthritis is the leading cause of disability in the United States with more than 46 million Americans having doctor-diagnosed arthritis.1 Local injections of corticosteroids and anesthetic agents are heavily relied on as early, effective interventions for pain relief. The current standard of practice, ‘blind injection,’ depends on the expertise of the clinician and the accuracy with which the medications are injected into the affected joint space. According to a recent study published in The American Journal of Sports Medicine, injection accuracy rates are significantly higher when imaging is used in conjunction with injection of the knee and shoulder.

The Navigator DS automates the preparation and delivery of injections using ultrasound to guide accurate needle positioning. The automated system helps to ensure accurate dose preparation, while eliminating needle exposure to healthcare workers and minimizing the potential for contamination. After the injection is delivered, the system records the treatment data and automatically creates a record for transfer to an electronic record management system.

“The support of our existing investors validates the investment community’s continued confidence in the vision of the company and the benefits of our product platform to improve the efficiency and accuracy of injection delivery,” said Timothy J. Patrick, president and chief executive officer of Carticept. “With the completion of this financing, we are well positioned to launch the Navigator DS in leading orthopaedic and sports medicine centers across the United States.”

About Carticept Medical, Inc.

Based in Alpharetta, Ga., Carticept Medical, Inc. is a privately held medical device company established in 2005 to develop and market innovative solutions for patients with osteoarthritis or cartilage damage. Major investors include Domain Associates, New Enterprise Associates and SonoSite, Inc. Additional information is available on the company’s website at www.carticept.com.

1 Arthritis: Meeting the Challenge. Atlanta, GA: National Center for Chronic Disease Prevention and Health Promotion; 2009. [http://www.cdc.gov/NCCDPHP/publications/aag/pdf/arthritis.pdf]

Contacts

For Carticept Medical, Inc.
Krystin Hayward/Rachel Gross, 781-684-0770
Carticept@schwartzmsl.com

Release Summary

Carticept Medical, Inc., today announced that it has completed a $10 million round of financing, led by existing investors Domain Associates, New Enterprise Associates and SonoSite, Inc.

Contacts

For Carticept Medical, Inc.
Krystin Hayward/Rachel Gross, 781-684-0770
Carticept@schwartzmsl.com