Francis Medical Secures $18 Million Series A Funding to Advance Vapor Ablation Therapy for Urological Cancers

VCBeat (WeChat ID: vcbeat) has learned that U.S. private healthcare company Francis Medical recently announced the completion of an $18 million Series A financing round. The round was led by Arboretum Ventures, with participation from H2Oey Ventures (a subsidiary of Solas BioVentures Fund), Tonkawa, and Boston Scientific.

Francis Medical is a privately held medical device startup headquartered in Minneapolis, dedicated to developing treatments for urologic cancers and firmly believing that minimally invasive therapies can halt cancer progression. The company was established in memory of the founder Michael Hoey’s father, Francis Hoey, who passed away from prostate cancer in 1995. During his father’s treatment, their daily life was severely impacted.

Michael Hoey, the founder of Francis Medical and its Chief Technology Officer, is a successful R&D expert and entrepreneur. He developed an innovative patented cancer therapy—Convective Water Vapor Energy—which converts sterile water into water vapor to store thermal energy in controlled doses, then delivers this thermal energy to prostate tissue via convective radiofrequency, thereby achieving the treatment of benign prostatic hyperplasia (BPH).

This is a minimally invasive therapy initially used for the treatment of prostate cancer (PCa), with plans to expand its application to various urological cancers. Previously, Francis Medical conducted early feasibility clinical trials in the Dominican Republic, Paraguay, and Panama, which secured the company $18 million in Series A financing.

It is understood that the company will use the newly raised funds to further develop vapor ablation therapy.

Michael Kujak, President and Chief Executive Officer of the company, stated, “This funding will support the expansion of our international clinical activities. In late 2019, we will conduct an Investigational Device Exemption (IDE) pilot study in the United States. Our goal is to act swiftly to broaden the potential of water vapor ablation as a significant, non-invasive therapeutic option for prostate cancer, renal cell carcinoma, and bladder cancer.”

Michael Kujak’s appointment as CEO will accelerate the formation of Francis Medical, as well as upcoming product development and clinical activities. Kujak brings extensive global healthcare experience, having held leadership positions in the medical technology sector for 30 years. His recent achievements include the development and commercialization of innovative medical procedures, such as those offered by U.S. Healthcare Systems and NxThera for the treatment of benign prostatic hyperplasia (BPH).

Hoey stated, “Based on the success of preliminary clinical trials, we believe that vapor ablation therapy for prostate cancer will be an effective novel treatment option, avoiding side effects associated with radical prostatectomy, such as urinary incontinence and erectile dysfunction. We predict that this technology will represent a truly minimally invasive breakthrough, improving patients’ quality of life and providing more cancer treatment options for patients with prostate, bladder, and kidney cancers.”

Arboretum Ventures is a venture capital firm specializing in the healthcare industry, with a focus on companies in healthcare services, medical devices, diagnostics, health information technology, therapeutics, technology-enabled healthcare services, and life sciences tools.

Founded in 2002 and headquartered in Michigan, the company manages $450 million across four investment funds.

Solas BioVentures is a venture capital firm established in December 2014 and headquartered in Tennessee, United States. The company primarily provides funding to development-stage biotechnology, medical device, and diagnostics companies.

Boston Scientific is a leading innovator in medical solutions, founded in 1979 and headquartered in Massachusetts.

The company is committed to improving the health outcomes of patients worldwide, with its products and technologies primarily used for the diagnosis and treatment of various diseases, including asthma, cancer, chronic pain, digestive and nutritional disorders, arrhythmias (abnormal heartbeats), cardiovascular conditions, kidney stones, men’s health, Parkinson’s disease, and women’s health.

NxThera is a medical company founded in 2008 by Michael Hoey, the founder of Francis Medical. The company developed the Rezūm System, a medical device that improves urinary flow in men and enhances patients’ quality of life.

NxThera underwent multiple rounds of financing. In 2018, the company was acquired by Boston Scientific for $400 million. Subsequently, Michael Hoey founded another medical company, Francis Medical.