CardioMech, a Norwegian medical device company that primarily operates in Minnesota, said Tuesday that it has secured $13 million in new funding.
CardioMech is developing a heart valve repair device that treats degenerative mitral regurgitation, a condition when blood flows backward to the heart. It is the third most common cardiovascular disease and CardioMech expects if successful, its potential market share may surpass $6 billion.
Today, the condition is only treatable through open-heart surgery and CardioMech is working on a catheter procedure to allow patients to avoid those risky surgeries and recover more quickly.
In total, CardioMech has raised $42 million since its founding in 2015, nearly half of which has been secured in the past year. The investors in the new round weren't disclosed.
CardioMech CEO Rick Nehm said the $13 million will fund an early feasibility study while they plan to open a clinical trial early next year.
Nehm, who is a Roseville native, joined Norway-based CardioMech in 2018 as CEO after falling in love with the company when he worked at Boston Scientific. Nehm said he believes CardioMech’s device is a category-defining product that has the potential to do much good for many people.
Despite being founded in Norway and listing a Norwegian headquarters, Nehm says he runs all the company's operations in Minnesota and has no plans to operate in Europe, although he has moved to Sweden with his family.
Before 2020 when the EU adopted Medical Device Regulation, med-tech devices were usually tested and approved in Europe before moving into U.S.
Nehm said operating in the States just makes sense and puts them in the best position for development. Nehm said he appreciates the opportunities Minnesota has to offer as a medtech hub, which he says has been critical for the company’s developing success. Currently, CardioMech runs research and development, manufacturing and quality-control operations out of Fridley, where it has five full-time employees and contract equipment manufacturers, engineers, suppliers and consultants in Minnesota.
