Axios Pro Exclusive Content

Imbed Biosciences unwraps $10M convertible financing

Illustration of a dollar bill made into a bandaid

Illustration: Sarah Grillo/Axios

Imbed Biosciences, a wound repair medical device company, has secured $10 million in new funding, the company tells Axios exclusively.

Why it matters: Wound management has a significant economic impact on health care, with surgical site infections accounting for $3.3 billion a year in hospital costs.

Details: The convertible debt financing was led by Japanese conglomerate Niterra through its CVC fund jointly operated with Pegasus Tech Investors.

  • Imbed has at least one additional wound care product awaiting FDA review this year, co-founder Ankit Agarwal tells Axios.

How it works: Madison, Wisconsin-based Imbed's FDA-cleared flagship product is a multi-layer sheet made of polymeric film laden with bioactive molecules (ionic and metallic silver), designed to fight infection and buildup of biofilm.

  • Its newest product, which is awaiting FDA approval, includes local anesthetic lidocaine as well as the metallic silver to manage pain.
  • The company recently inked a group purchasing organization (GPO) contract with HCA, significantly expanding its commercial reach, CFO Elizabeth Taylor tells Axios.
  • "We're about to sign another large GPO contract in the first quarter that would add many, many more hospital opportunities for us," Taylor says.

By the numbers: Imbed booked $4 million in revenue in 2022 and finished last year with $14.4 million, Taylor says.

  • She expects $25 million to $30 million in sales this year, which doesn't account for any new products.
  • Imbed has raised nearly $30 million to-date.

What's next: "We are wed to some sort of corporate financing" in the next year to secure large commercial scale, Taylor says.

  • Medical device strategics with robust distribution channels could be attractive, as could institutional investors, Taylor says.

Of note: Imbed's technology was a logical extension of Niterra's mission to enable home health, says Dirk Schapeler, president of Niterra Ventures Company.

  • Since expanding its focus from automotive products in April 2023, Niterra has been investing in companies designed to manage diseases remotely.
  • "Some of those diseases we're working on, they involve wound care," Schapeler says. "Therefore, we have been investing into very differentiated technologies in wound care."

State of play: Imbed competes with Organogenesis (Nasdaq: ORGO), 3M-owned Acelity and ConvaTec (OTCMKTS: CNVVF), per Agarwal.

  • Imbed is also trying to claim market share from publicly-traded med device giants Smith & Nephew and Johnson & Johnson, according to Agarwal.
  • Meanwhile, there's a cadre of virtual-first wound care players that have snapped up funding in recent years.
  • Schapeler says Imbed's product will likely be integrated into existing Niterra virtual care platforms.
Go deeper