Catalyst OrthoScience Secures $12.7M Series C Funding to Advance Minimally Invasive Shoulder Replacement Implant

VCBeat (WeChat ID: vcbeat) has learned that medical device company Catalyst OrthoScience recently announced the oversubscription of its $12.7 million Series C financing round. The round was led by River Cities Capital Funds. England Securities LLC served as the financial advisor for this financing, and Dentons US acted as legal counsel to Catalyst OrthoScience.

Brian K. Hutchison, Chairman and CEO of Catalyst OrthoScience, stated: “This oversubscribed financing will be used to enhance the company’s infrastructure, recruit additional talent, and promote our novel total shoulder arthroplasty solutions to surgeons and their patients, thereby driving rapid corporate growth.”

Catalyst OrthoScience, founded in 2014 and headquartered in Naples, Florida, USA, is a medical device company focused on the upper extremity orthopedic surgery market. The company is dedicated to developing and marketing a range of minimally invasive, high-efficiency surgical implants.

Catalyst OrthoScience has developed a minimally invasive total shoulder implant named Catalyst CSR. This device, characterized by its minimal invasiveness, represents the future direction of shoulder arthroplasty. Its therapeutic principle is analogous to that of knee arthroplasty: it creates a unique multi-planar chamfer cut at the proximal humerus to minimize bone resection and preserve the strongest and densest bone stock for fixation of the humeral component.

Traditional shoulder implants feature a spherical design, whereas Catalyst OrthoScience employs a non-spherical design that mimics the natural anatomy of the human shoulder, thereby facilitating patient recovery. Additionally, traditional shoulder implants require resection of the proximal humerus to insert surgical instruments into the medullary canal. The Catalyst CSR system does not require insertion into the medullary canal, allowing for maximal preservation of the patient’s strong, healthy bone stock.

Catalyst CSR received FDA approval in 2016 and has been used in over 1,000 surgeries. The first cohort of patients treated with this device demonstrated favorable outcomes two years postoperatively. The device has garnered unanimous endorsement from a panel of top key opinion leaders in the shoulder arthroplasty market.

According to Crunchbase, since its inception, Catalyst OrthoScience has completed four rounds of financing, with a total funding amount of $31 million. Specifically, in November 2017, the company secured a $3.6 million Series C round led by IrishAngels; in May 2019, it closed a $12.7 million Series C round invested by Mutual Capital Partners.

Carter McNabb, Managing Director of River Cities Capital Funds, stated, “We look forward to promoting minimally invasive therapies in the field of shoulder arthroplasty through our partnership with Catalyst OrthoScience.” Upon closing of the financing, Carter McNabb will join the Board of Directors of Catalyst OrthoScience.

River Cities Capital Funds, established in 1994 and headquartered in Ohio, USA, is a venture capital firm dedicated to investing in healthcare and information technology companies.

(Compiled by Jiao Yanli)