ONWARD Medical, a medical technology company that creates spinal cord stimulation therapies to restore movement, function, and independence in people with spinal cord injury, announced it secured an investment from Ottobock to raise $50 million (EUR) in gross proceeds that is expected to support the company’s anticipated commercialization of the ARC-EX System and other development, clinical, and commercial activities for at least the next two years.
“We are delighted to complete this successful transaction, and we are also very pleased to welcome Ottobock as a strategic investor and partner,” said Dave Marver, CEO of ONWARD Medical. “Now that this financing is complete, we look forward to exploring opportunities to collaborate closely with Ottobock to enhance and accelerate our ability to develop and commercialize our breakthrough therapies worldwide.”
Following the closing of the private placement, Ottobock will hold 10 percent of the company’s share capital.
“We are delighted with the successful transaction that has made Ottobock the cornerstone investor in ONWARD Medical,” said Professor Hans Georg Näder, Ottobock owner and chairman of the board. “As [an] innovation leader in our industry, we see great potential in their therapy approaches for people with spinal cord injuries.”
ONWARD Medical currently envisions using the net proceeds of the private placement to:
- Fund research and development activities, including continued product development, clinical studies and regulatory activities for the investigational ARC-EX System to restore hand and arm function, the investigational ARC-IM System for improved blood pressure regulation after SCI and other exploratory indications, and the investigational ARC-BCI System to restore thought-driven movement of the human body after SCI
- Support the expected commercial launch of the ARC-EX System in the United States in late 2024, including hiring a field sales organization and conducting selling activities, producing training and education materials and conducting training events, attending congresses, developing customer support capabilities and conducting customer support activities, and conducting market access and reimbursement activities
- Build quality, operations, and administrative capabilities
- Fund working capital requirements and potential strategic opportunities, aimed at establishing, maintaining, or strengthening competitive advantage through license arrangements, acquisitions whether by assets or shares, or other arrangements
- Cover financing costs associated with existing obligations under current and anticipated debt funding
