Phraxis Secures $5.6M Funding to Advance Novel Hemodialysis Therapy and Submits Preliminary IPO Prospectus

On March 22, VCBeat (WeChat official account: vcbeat) learned that medical device company Phraxis had recently raised approximately $5.6 million through a new round of equity and option financing. The proceeds will be used to develop novel therapies for hemodialysis. There were seven investors in this funding round, all of whom remained anonymous.

Phraxis was founded in 2008 in St. Paul, Minnesota, as an early-stage medical device company dedicated to developing novel therapeutic solutions for patients requiring vascular access for hemodialysis. The company’s first commercialized product, InterGraft, is a percutaneously delivered arteriovenous shunt designed to provide a unique, non-surgical approach for patients in need of vascular access. Phraxis has also developed interventional nephrology devices to help physicians effectively manage dialysis patients.

It is understood that hemodialysis utilizes precision instruments to withdraw blood from the human body and direct it to a hemodialysis machine. A dialyzer supported by a semipermeable membrane (commonly known as an artificial kidney) is employed to substitute for the excretory function of the human kidneys, removing waste products and excess fluid from the blood, before returning the blood to the vasculature.

Establishing appropriate vascular access is a prerequisite for hemodialysis. Patients undergoing hemodialysis must have sufficient blood flow to effectively remove uremic toxins and excess fluid. Surgical intervention is required to create permanent vascular access. The procedure typically involves connecting the patient’s own artery to a vein, known as an "autogenous arteriovenous fistula," or using a synthetic graft to connect the artery and vein, referred to as an "arteriovenous graft." The preferred surgical site is the forearm of the non-dominant hand, followed by the upper arm; if vascular access cannot be established in either upper limb, the lower limbs are considered. A well-functioning vascular access must deliver 250–350 mL of blood per minute through the artificial kidney during dialysis to achieve adequate clearance of uremic toxins. Therefore, vascular access is the lifeline for patients undergoing hemodialysis.

Hemodialysis is primarily used to treat acute renal failure and chronic renal failure. There are two main methods: external arteriovenous shunting and internal arteriovenous shunting. External arteriovenous shunting does not require puncture, is simple to operate, and can be used for a relatively long period. However, it requires a catheter, which causes inconvenience in daily life, and long-term use is prone to thrombosis, bleeding, and infection. Internal arteriovenous shunting, also known as subcutaneous arteriovenous shunting, is suitable for long-term chronic dialysis. Internal arteriovenous shunting can maintain blood flow patency for an extended period, is less prone to bleeding and infection, and does not require a catheter.

Jim Hickney, CEO of Phraxis, stated, “I believe that Phraxis can reduce the risk of trauma and infection for patients while providing them with better medications. The company will utilize these funds to complete its ongoing clinical studies in order to obtain FDA approval.”

Phraxis seeks to raise an additional $1.4 million in this round, bringing the total financing for the round to approximately $7 million. This marks the company’s third round of funding since its establishment in 2008.

(Compiled by Li Chengping)