Clarify Medical Secures $18 Million Series A Funding to Advance Home-Based Phototherapy System for Chronic Skin Conditions

VCBeat (WeChat ID: vcbeat) has learned that on October 23, 2019, Clarify Medical announced the completion of an $18 million Series A financing round. The round was led by HIG BioHealth Partners, with participation from 7wire Ventures, SV Health Investors, and Bluestem Capital.

In addition, Michael Wasserman, Managing Director of HIG BioHealth Partners; Robert Garber, Partner at 7wire Ventures; and Paul LaViolette, Chief Operating Officer of SV Health Investors, will join the company’s board of directors.

It is reported that this round of financing will be used for the further development of the Clarify home phototherapy system and to advance its commercialization.

Clarify Medical was founded in California, USA, in 2014. The company has developed an advanced therapeutic system—the UVB System—for the treatment of patients with chronic skin conditions. In the United States, approximately 30 million people suffer from psoriasis, vitiligo, and eczema, and around 5,400 dermatologists are engaged in the treatment of these conditions. The FDA-cleared Clarify System is indicated for targeted phototherapy of dermatological conditions across all skin types (I–VI), including psoriasis, vitiligo, atopic dermatitis (eczema), seborrheic dermatitis, and leukoderma.

The dermatological treatment plan remains at the discretion of the patient’s physician, while monitoring and control are managed by the Clarify system. The Clarify home phototherapy system is the first and only phototherapy system connected to a mobile phone.

Patients can download the application on their smartphones (supporting both iOS and Android systems) to manage the dosage, frequency, and duration of targeted narrowband UVB (NB-UVB) phototherapy. This helps patients adjust their treatment in accordance with the dosages recommended in the "Guidelines of Care for the Management of Psoriasis and Psoriatic Arthritis" published by the American Academy of Dermatology, as well as the recommendations from the Vitiligo Working Group on NB-UVB phototherapy for vitiligo, enabling precise clinical treatment at home.

George Mahaffey, President and CEO of Clarify Medical, stated, “Within a short period after the commercial launch of the Clarify system, we secured insurance coverage and enabled many patients to manage chronic skin conditions at home. With this funding, we are prepared to roll out the system across the United States, improve market access standards, and raise awareness within the dermatology community that patients now have a safe and effective option for home phototherapy.”

Dr. Wasserman, Managing Director of HIG BioHealth Partners, stated, “Clarify has attracted strong investors in the medical technology and digital health sectors to drive its commercialization. Significant technological advancements in the Clarify system will enable patients with chronic skin conditions such as psoriasis, vitiligo, and eczema to manage their conditions at home while staying connected with their physicians through Clarify’s cloud connectivity. This approach delivers substantial value to patients, physicians, and healthcare enterprises.”

HIG BioVentures is a U.S.-based investment firm dedicated to investing in life sciences companies across multiple stages of development. Its investment team possesses extensive experience in large pharmaceuticals, small biotechnology firms, medical devices, diagnostics, basic science, clinical research, and technology transfer.

7wire Ventures, founded in Chicago, USA, in 2011, focuses on investing in companies in the fields of healthcare IT, digital health, and mobile health, with investments spanning the early and growth stages of these companies.

SV Health Investors, founded in 1993, is a Boston-based venture capital firm primarily investing in the biotechnology and healthcare sectors. The firm manages over $2 billion in capital.

Bluestem Capital, headquartered in South Dakota, USA, is a private equity firm dedicated to recapitalization, acquisitions, and mezzanine financing.

(Compiled by Jiang Ying)