Tucson-based SynCardia lands $19M investment

2013-03-20T10:45:00Z 2013-03-20T11:52:32Z Tucson-based SynCardia lands $19M investmentBy David Wichner Arizona Daily Star Arizona Daily Star
March 20, 2013 10:45 am  • 

Tucson-based artificial heart maker SynCardia Systems Inc. has raised $19 million in new, long-term growth capital from investors including a major health-care investment fund.

The investment round includes a $15 million, structured financing arrangement with New York-based Athyrium Opportunities Fund, as well as a $4 million follow-on equity investment from existing shareholders, the privately held company said today.

SynCardia manufactures the world’s only temporary artificial heart approved as a bridge to transplant in the U.S, Canada and Europe.

SynCardia Chairman and CEO Michael Garippa said in prepared remarks the proceeds of the investment round will help fund commercialization of the company’s portable pneumatic heart driver, which is awaiting final U.S. approval.

The new capital also will accelerate the launch of SynCardia’s smaller, 50cc Total Artificial Heart, which is designed for smaller patients including women and adolescents, said Garippa, who also is SynCardia’s president.

According to Athyrium’s website, the financing arrangement with SynCardia includes a secured term loan and warrants to buy company stock.

Laurent Hermouet, a partner in Athyrium, said SynCardia’s new offerings will address the entire market for biventricular heart-failure devices and likely drive company growth. He also cited the possibility of extending the financing relationship.

“SynCardia’s recent growth is likely the beginning of a longer-term trend,” said Hermouet, whose global health-care fund has more than $500 million under management. “We look forward to expanding this initial relationship as might be needed in upcoming quarters.”

In 2012, SynCardia generated $25 million in revenue and a record-breaking 125 implants at more than 50 SynCardia certified implant centers worldwide, Garippa noted. Prior to the investment round announced Wednesday, SynCardia had raised more than $50 million in capital.

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