Aerin Medical Secures $50 Million Debt Financing to Advance Nasal Airway Remodeling Therapy

Recently, VCBeat (WeChat official account: vcbeat) learned that Aerin Medical, a medical technology company headquartered in Austin, Texas, USA, has entered into a $50 million non-dilutive term loan agreement with CRG LP.

Aerin Medical boasts an advanced treatment platform that utilizes low-power radiofrequency (RF) energy to reduce nasal soft tissue, thereby fundamentally addressing nasal congestion. The Aerin Medical treatment platform delivers targeted therapy to diverse patients by transmitting low-power RF energy through the surface of nasal tissue, without causing any wounds. Aerin Medical’s proprietary algorithms ensure that treatment temperatures remain below hazardous levels, protecting nasal tissue from RF-induced damage. Aerin Medical’s mission is to provide otolaryngologists with minimally invasive solutions for treating respiratory conditions, thereby improving patients’ quality of life.

Aerin Medical has already secured a $35 million loan, with the remaining $15 million to be disbursed by CRG LP upon Aerin Medical’s achievement of predefined performance targets.

Approximately $16.5 million of these funds was used to repay Aerin Medical’s existing debt, with the remainder allocated to strengthening the company’s marketing channels and funding the research and development of new products.

In December 2017, Aerin Medical’s nasal airway remodeling therapy received FDA approval. Clinical trials demonstrated that treated patients experienced an average 69% improvement in breathing capacity. In January 2018, Aerin Medical launched large-scale commercial promotion and expanded its distribution channels.

The CEO of Aerin Medical stated that, as a standalone therapy, nasal airway remodeling offers a non-invasive option for rapidly opening the nasal passages in patients suffering from nasal obstruction or congestion. Additionally, nasal airway remodeling can serve as an adjunct to other nasal surgical procedures, such as septoplasty, turbinate reduction, and sinus surgery.

“Nasal airway remodeling is a simple and effective surgical solution for the nasal cavity that can be performed in the physician’s office and completed within minutes,” said Michael Sillers, a world-renowned rhinologist and former president of the American Rhinologic Society.

CRG LP is a well-established pioneer investment firm in the global healthcare industry. Since its inception in 2003, CRG LP has provided capital support for innovative technologies in the healthcare sector by meeting the capital growth needs of its global business partners. CRG LP collaborates with companies in the healthcare field through a combination of debt and equity financing structures, an approach focused on minimizing equity dilution for portfolio companies while maximizing support for their development.

(Compiled by Zhang Yujie)