Sonex Health Inc. closed on a $40 million Series B financing round, which will help the Eagan-based company expand the access of its device used to treat pain from repetitive-strain injuries such as carpal tunnel syndrome and trigger finger.
KCK MedTech, a Campbell, California-based venture firm specializing in medical technology, has been the sole investor in both this financing round and the previous one. Sonex also closed on a new debt facility with venture lender Horizon Technology Finance Corp.
President and CEO Bob Paulson said the funds help Sonex to continue to expand patient access, increasing the number of physicians trained in offering the specific procedure. The money also allows the company to continue building clinical data to demonstrate safety and efficacy and expand into potentially other clinical applications.
Sonex was co-founded by former Mayo Clinic physicians Darryl Barns and Jay Smith. It was launched out of the Mayo Clinic Business Accelerator Program in 2014, according to Business Journal reporting.
The UltraGuideCTR device got clearance from the FDA in 2019 and went to market soon after. Since then, more than 20,000 commercial procedures have been done. Between 2021 and 2022, the company grew by about 65% and is expected to grow this year by 72%-75%, Paulson said.
Usually, carpal tunnel release and trigger finger release procedures are performed in a hospital or ambulatory surgery center. Sonex devices used under ultrasound guidance have let physicians move the procedures from surgical suites into cheaper office-based procedure rooms.
Patients can return to their normal daily routine much more quickly and health care systems save money, Paulson said.
Two recent clinical trials had “lightspeed” enrollment, Paulson said, showing that there’s a high interest in the procedure. About 50 in 1,000 people in the U.S. have carpal tunnel syndrome, according to a 2022 study published by the National Institutes of Health.
The company is now working to scale up. Most clinicians trained for these types of procedures are accustomed to making larger incisions and directly seeing the anatomy. With Sonex’s device, those clinicians are learning to do it under an ultrasound.
There’s a learning curve, but “it absolutely can be done. It just takes repetition and practice,” Paulson said.
