October 31, 2008 »»» Symphony Drums Up $10M On Way To Series C

Symphony Medical Inc. has raised a $10 million convertible note financing in preparation for a total $25 million fund-raising slated to close in the first half of next year, Chief Executive Raymond W. Cohen said.

The $10 million note and warrant purchase was first made public in a Form D filing received by the Securities and Exchange Commission on Sept. 9. It was completed through existing investors including Domain Associates, Johnson & Johnson Development Corp., Morgenthaler Ventures and Triathlon Medical Ventures.

Symphony Medical, which was founded in 2003, has raised just under $20 million to date, Cohen said. The company now counts Saints Capital as a small shareholder after it acquired the previous shares held by Guidant and Boston Scientific Corp.

"It's going to convert into a Series C equity round," Cohen said, indicating the company plans to raise an additional $15 million through a combination of new and existing investors. "We're looking to add one or more new investors to the group."

The initial $10 million convertible debt is slated to advance the company's lead program for heart failure to human clinical studies, targeted for the first quarter of next year. The additional $15 million fund-raising should enable the company to continue its research and pursue follow-on studies, Cohen said.

Laguna Hills, Calif.-based Symphony Medical's heart failure treatment consists of a biopolymer implanted into the heart's left ventricle, with the aim of reducing its size and thickening its wall. The treatment aims to treat heart failure patients whose hearts often become dilated and misshapen over time, resulting in an increase in cardiac function, Cohen said. The company is working to perfect its technology with researcher Hani N. Sabbah at the Cardiovascular Research Laboratories at the Henry Ford Hospital in Detroit.

With the additional $15 million, Symphony Medical should have sufficient capital to last through the end of 2010, Cohen said. At that point, the treatment is expected to be in late clinical development, ultimately slated to debut on the market in late 2011.

Back to NEWS HEADLINES