Pittsburgh, PA (September 11, 2013) – ALung Technologies, Inc., a leading developer of innovative respiratory assist devices, today announced that it has closed a $15.8 million Series B-1 financing round. Allos Ventures led the financing, with West Capital Partners, Birchmere Ventures, BlueTree Capital Group, PLSG Accelerator Fund, Smithfield Trust Company, and several additional private investors also participating in the round. The round is one of the largest this year in Pittsburgh’s life sciences market.
The proceeds will primarily support ongoing global commercialization of the Hemolung Respiratory Assist System (RAS), a new extracorporeal carbon dioxide removal (ECCO2R) system that provides a dialysis-like alternative or supplement to mechanical ventilation. ALung has established direct commercial operations in Germany, France, and the United Kingdom, and is entering additional markets in conjunction with distribution partners. To date, the Company has raised a total of $56 million in equity capital.
“We appreciate the support of our new investment partners, along with our current investors, and their belief in the potential for the Hemolung RAS to help the large number of patients suffering from acute respiratory failure,” said Peter DeComo, Chairman and CEO of ALung. “This new capital represents a strong vote of confidence in ALung. In addition to supporting our global launch of the Hemolung RAS, this financing will permit further development of next-generation products and platform technologies for providing less-invasive extracorporeal lung support.”
“We are pleased to be working again with Pete on another innovative medical device,” said John McIlwraith, Managing Director of Allos Ventures. Mr. McIlwraith was also an investor in Renal Solutions, a Pittsburgh-based medical device company formerly led by Mr. DeComo and acquired by Fresenius Medical Care in 2007 for $190 million. “We estimate that the market for ECCO2R is upwards of $4 billion, and ALung is poised to capture a substantial portion with the Hemolung RAS, which saves both hospitals and insurers money by avoiding intubation and invasive mechanical ventilation, while greatly improving the quality of care for patients.”
About the Hemolung RAS
The Hemolung RAS is a dialysis-like alternative or supplement to mechanical ventilation. The system provides Respiratory Dialysis®, a simple, minimally invasive form of extracorporeal carbon dioxide removal (ECCO2R) and has indications for use in patients with acute respiratory distress syndrome (ARDS) and acute exacerbation of chronic obstructive pulmonary disease (COPD). The device is approved for sale in Europe and Canada.
About ALung Technologies
ALung Technologies, Inc. is a Pittsburgh-based developer and manufacturer of innovative lung assist devices. Founded in 1997 as a spin-out of the University of Pittsburgh, ALung has developed the Hemolung RAS as a dialysis-like alternative or supplement to mechanical ventilation.
For more information, please visit https://www.alung.com.
About Allos Ventures
Allos (www.allosventures.com) invests in early-stage technology companies in the Midwest, augmenting the capital provided by angel investors who have helped the companies reach a stage at which they are ready for their first institutional financing round. The fund focuses on industries where the Allos investment team has investing and/or operating experience – primarily software and technology-enabled business service companies. Allos’ principals believe in the benefits of a “hands-on” approach to venture capital investing, which allows the firm’s partner companies to leverage the business-building skills and resources developed by the Allos principals over the past decade, as well as those of the firm’s investors, many of whom are successful entrepreneurs.
This press release may contain forward-looking statements, which, if not based on historical facts, involve current assumptions and forecasts as well risks and uncertainties. Our actual results may differ materially from the results or events stated in the forward-looking statements, including, but not limited to, certain events not within the Company’s control. Events that could cause results to differ include failure to meet ongoing developmental and manufacturing timelines, changing GMP requirements, the need for additional capital requirements, risks associated with regulatory approval processes, adverse changes to reimbursement for the Company’s products/services, and delays with respect to market acceptance of new products/services and technologies. Other risks may be detailed from time to time, but the Company does not attempt to revise or update its forward-looking statements even if future experience or changes make it evident that any projected events or results expressed or implied therein will not be realized.
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