ParaGen Technologies, a Columbus, OH-based holding company of four tissue engineering medical device companies, announced that it raised $3 million in funding. The round was managed and organized through Ikove Venture Partners’ global network of investors (70% of the funds came from investors across 10 countries).
Tissue Engineering
The field of tissue engineering is focused on developing solutions to recreate the biological structures of the body. Generally, the synthetic products currently available do not provide the environment required for the cells of the body to integrate, resulting in rejection. The biologic solutions available typically have problems with degradation, sourcing, and high cost. The scaffolds used by ParaGen Technologies show excellent biointegration, consistency, no rejection or encapsulation, and high function regrowth.
ParaGen Technologies Overview
ParaGen Technologies is a joint venture between Nanofiber Solutions, which developed the core technology, and the Ikove Startup Nursery, which provided the funding and go-to-market strategy. ParaGen developed a platform scaffold technology that redefines tissue engineering and addresses problems associated with biologic and synthetic implants. It’s four portfolio companies –
1. RenovoDerm wound care devices are designed to create an environment for tissue growth and regeneration, thus accelerating the body’s healing response. Through case studies in the veterinary market, RenovoDerm has demonstrated the ability to stimulate full regeneration of dermal tissue, including sweat glands and hair follicles, which play a vital role in the functionality of healthy skin.
The Phoenix Wound Matrix is intended for use in the management of wounds. Wound types include: Partial and full-thickness wounds, pressure ulcers, venous ulcers, diabetic ulcers, chronic vascular ulcers, tunneled/undermined wounds, surgical wounds (donor sites/grafts, post-Moh’s surgery, post laser surgery, podiatric, wound dehiscence), trauma wounds (abrasions, lacerations, second degree burns, skin tears) and draining wounds.
2. Atreon Orthopedics is developing a line of scaffold-based orthopedic products that accelerate and improve the quality of repair at the site of a bone/tendon tear. These healing inlays are placed on the bone and under the torn or ruptured tendon to promote the migration of cells into the bone/tendon interface.
The company’s first product, The Atreon BTi, is planned to launch in 2018. The Atreon BTi mimics the extracellular matrix found naturally in the body. The product is engineered to promote healthy tissue growth rather than an inflammatory response – thus decreasing scar tissue formation.
3. Vascular Genesis is building a line of cell-free, synthetic scaffold products as the foundation for vascular conduit replacement, eliminating the need for tissue donation, immune suppressants and the ever-present risk of transplant rejection. Their first product offering is a resorbable arteriovenous (AV) graft for dialysis access. The graft will degrade over a scheduled period of time and allow the body to create a new native tissue fistula for continual dialysis access. The graft is designed to match the compliance of the native artery/vein to which it attaches. Its self-healing capabilities will allow it to achieve stasis (stop bleeding) faster than competing products.
4. The Tarian Medical products are fully resorbable and designed to mimic the extracellular matrix found naturally in the body. This structure provides cells the environment needed to grow and regenerate healthy tissue, thus eliminating the problems associated with current products used.
The company’s first product, The Tarian AbS, is a hernia repair product that provides a structure for cells to attach and tissue regrowth at the site of the defect. Over the course of about three months, the scaffold is completely gone: leaving behind healthy tissue. The scaffold reduces infection, chronic pain, and recurrence, resulting in improved patient satisfaction.
Investment Plans
This latest investment round will be used to support the early commercialization of RenovoDerm’s proprietary product, The Phoenix Wound MatrixTM, pre-testing for FDA clearance of Tarian Medical’s Tarian AbS, as well as beginning the final round of animal testing for Vascular Genesis’ vascular access graft product.
“With this latest round of funding, we are able to continue our momentum of scaling out our portfolio companies and hitting significant milestones,” said Ross Kayuha, CEO of ParaGen. “The continued support and confidence of our investors is outstanding and is indicative of the company’s growth in the medical device industry.”
In mid-2019, ParaGen and Ikove plan to raise the company’s first Series A round.
