Bonesupport raises $37m to support Cerament platform

Bonesupport said today it raised $37 million in anew round of equity and debt financing, with funds slated to support its Cerament platform of products.

The oversubscribed equity round was led by Tellacq AB and joined by existing shareholders, including HealthCap, Lundbeckfond Ventures, Industrifonden, AP3 and Carl Westin, with the debt round being supported by Kreos Capital.

“I am delighted that we have been able to complete this new financing to help us to execute our strategy to deliver the significant potential of our unique Cerament drug eluting osteoconductive/osteoinductive bioceramic platform. I am also pleased that the equity element reflects the significant progress that we have made during the course of 2016. With our sales on a strong growth trajectory, an increasing body of compelling clinical data and a drug eluting platform that will allow us to develop a pipeline of novel products to treat a broad range of bone diseases, Bonesupport can look to the future with great confidence,” CEO Richard Davies said in a press release.

Funds from the round will support sales of Cerament BVF, G and V in existing and new markets, the company said.  Funds will also support clinical trials of the products and developing pipeline drug-eluting products.

As part of the funding round, Tellacq AB’s Dr. Håkan Björklund will join Bonesupport’s board as chair, though the appointment is subject to shareholder approval, the company added.

“We are delighted to welcome Håkan Björklund to the board at this exciting time for the company and look forward to benefiting from his extensive experience in the years ahead. I would also like to take this opportunity to thank the departing chairman Dr. Örn Stuge for his significant contribution to Bonesupport over many years” HealthCap managing partner Björn Odlander said in prepared remarks.

“Our decision to invest in Bonesupport was driven by the important progress that has been made over recent years. The Cerament drug eluting platform offers multiple opportunities to generate significant value by providing much needed and cost-efficient treatment options for patients with a broad range of bone diseases. I look forward to working with the management team and the Board to deliver Bonesupport’s potential to become a global leader in the management and treatment of bone disease,” Björklund said in a prepared statement.

Last month, Bonesupport released data from the prospective trial of its Cerament G injectable antibiotic-eluting bone substitute, touting a 96% infection eradication rate in patients treated with the substitute. Data from the study was published in The Bone and Joint Journal, the company said.

Cerament G is an osteoconductive, ceramic substance designed to promote bone healing while preventing bone infection, or osteomyelitis. The resorbable bone graft substitute is designed to remodel into healthy bone within 6-12 months, while preventing colonization of microorganisms by eluting the antibiotic gentamicin.

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