Apr 29 2010
Realton Corporation, a pioneer in developing diode-pumped laser systems initially targeted to treat enlarged prostate, today announced the closing of its Series B financing co-led by OrbiMed Advisors and China Healthcare Partnership (CHP, a fund under Martin Currie Asset Management Group).
Existing investor CSV Capital Partners will also participate in the financing. The financing will be used primarily to enhance Realton's marketing and distribution networks, expand its manufacturing capabilities and pursue new technology development.
Surgery for enlarged prostate, also known as benign prostatic hyperplasia (BPH), is the second most common operation for men over 60 years old worldwide. Realton's laser system is an alternative to traditional TURP surgery, delivering comparable results with reduced bleeding, shorter hospital stays, and fewer complications. As China and other developing countries populations are aging, an increasing number of elderly men are suffering from BPH. The prevalence of BPH in China has already exceeded 30 million people, with approximately 300,000 surgically treated annually and growing.
Realton laser BPH treatment utilizes a powerful 100-watt second generation green light laser allowing procedures to be easily performed on larger prostates, providing physicians with more freedom in clinical decision making. Lower upfront and operating costs allow Realton's systems and fiber optic delivery devices to be affordable at all levels of Chinese hospitals and urologist offices. The Realton laser products also have potential surgical applications in other urologic diseases.
Dr. Nancy T. Chang, Chairman and Senior Managing Director of OrbiMed's Caduceus Asia Partners Fund, and Vicky Chen, Partner of CHP, will join the board of Realton Corporation in connection with this transaction. "We are excited about Realton Corporation and believe their product provides a much safer alternative surgery for BPH patients," said Dr. Chang. "We are impressed by Realton's technology and its management team. We are looking forward to working with the company and are confident that it will become a leading company in the Chinese therapeutic medical device sector," said Vicky Chen, Partner of CHP.
Liyue Mu, president and CEO of Realton Corporation said, "We are excited to have world renowned investors in OrbiMed, Martin Currie and CSV Partners on board with us. With their expertise and great track record in helping medical device companies to achieve large-scale commercial success, we believe Realton will quickly have the opportunity to become an industrial leader in laser surgical applications."
"Realton's 100W green surgical laser has demonstrated great advantages in the treatment of BPH. Its high power reduces operation time and allows surgeons to treat large prostates. With the Realton laser, we are usually able to finish a minimally invasive procedure within 30-60 minutes," said Dr. Xunbo Jin, director of Minimally Invasive Center in Shandong Provincial Hospital. "Having successfully completed hundreds of these green laser procedures in our center, its clinical outcomes have proven effective and safe. With its advantages in both cost and service, the Realton surgical laser and fiber optic delivery device are well-suited to Chinese hospitals."