Tenex Health Announces $5 Million in Series A Financing to Commercialize the TX1™ System

  • Financing provides sales, marketing, and manufacturing resources to launch breakthrough technology

LAKE FOREST, Calif.--()--Tenex Health Inc. today announces the closing of $5 million in Series A financing. The capital was raised through private equity investments and follows a seed round of financing that yielded $1.7 million. The completion of this stage marks another meaningful milestone for Tenex Health in a short period of time, beginning with the incorporation of the company in 2009 and its recent 510(K) FDA clearance announced in February 2011. The company will direct the use of funds for product manufacturing, development of a sales force, and marketing initiatives.

“I have been very impressed with the pace and focus of the management at Tenex Health,” said Ivan Mijatovic of VCI Partners, who led the Series A finance stage. “This company offers a new paradigm to treat musculoskeletal disorders. We are very excited about the product pipeline and look forward to a successful launch of the TX1 System.”

Based on technology developed in collaboration with Mayo Clinic, the TX1 Tissue Removal System is a portable, self-contained system utilized in the FAST™ procedure—Focused Aspiration of Soft Tissue for precise removal of diseased tendon tissue and related musculoskeletal tissue with intended use in the elbow, knee, ankle, foot, and shoulder.

“The TX1 System offers the opportunity to successfully debride and aspirate the damaged area of the tendon in a targeted and minimally invasive manner through the use of ultrasound imaging. This technology is highly appealing in the restoration of natural tendon and soft tissue function,” said knee specialist Richard Steadman, MD, who founded the Steadman Clinic in Vail, Colorado.

“I am excited with not only the company’s growth, but also the strong interest in our technology from some of the premiere sports medicine physicians and surgeons,” says Jagi Gill, CEO and Founder of Tenex Health. “It affirms how truly innovative and beneficial the TX1 System is by removing pain-generating pathologic tissue in a minimally invasive manner so that physicians may intervene earlier in the course of the patient’s condition. Our initial clinical experience suggests that the procedure, which is conducted under local anesthesia with patients fully awake, provides no discomfort and delivers sustainable results in relieving their pain. The FAST procedure is a very appealing therapy for both physicians and patients.”

Tenex Health launched the TX1 System in May 2011 and is already showing profits and a growing customer base. The initial joints for intervention are the elbow and knee, with product launches addressing plantar fascia, shoulder, and Achilles injuries forthcoming.

About Tenex Health Inc.

Tenex Health Inc. is a pioneer in minimally invasive therapies for removal of diseased soft tissue and restoration of healthy musculoskeletal function. The FAST procedure is designed to quickly, safely, and precisely remove diseased tissue to alleviate pain and improve mobility, helping patients quickly return to the activities they enjoy with minimal downtime. To learn more about the TX1 Tissue Removal System and the FAST procedure, visit www.TenexHealth.com or www.FASTprocedure.com.

About Tendon Injuries

Over 10 million people in the United States suffer from tendon injuries every year. Tendon injuries can occur at any joint in your body, but are most commonly observed in the upper and lower limbs. Injury to tendon tissue leading to chronic tendinosis is associated with pain and reduced ability to perform simple daily activities. The tendon pain itself is believed to be associated with tiny tears and degeneration within the tendon tissue that can create pain, stiffness, or inflammation around the tendon. This degenerated region is slow to heal due to a poor blood supply to the tendon tissue itself. As such, optimal therapy is focused on removing the damaged tissue and pain source in an attempt to promote tissue healing.

Contacts

DevicePharm
Amber Chao, Account Executive
949-271-1180
amberc@devicepharm.com

Release Summary

Tenex Health raises $5 million for commercialization of the TX1 Tissue Removal System. Funds will be directed towards product manufacturing, development of a sales force, and marketing initiatives.

Contacts

DevicePharm
Amber Chao, Account Executive
949-271-1180
amberc@devicepharm.com