Exclusive: Vero Biotech secures $65M credit facility for nitric oxide delivery system
Medical device company Vero Biotech received $65 million from Horizon Technology Finance and Monroe Capital, Vero Biotech board director Todd Brady tells Axios exclusively.
Why it matters: The company's portable, tankless nitric oxide delivery system aims to make it easier to treat persistent pulmonary hypertension in newborns.
Details: The $65 million is a single funding, term-loan credit facility. Part of the proceeds will refinance an existing loan.
- This is the first such transaction for Horizon under Monroe's ownership, as the two merged in July 2023.
How it works: Vero's FDA-approved Genosyl product is designed to deliver a constant concentration of inhaled nitric oxide gas for cardiac patients in acute settings.
- Genosyl aims to eliminate the need for large nitric oxide tanks — which tend to be costly and labor-intensive — in neonatal intensive care units.
What's next: "This funding will support the continued commercial expansion of the Genosyl, as well as other R&D initiatives," Brady says.
- "We needed a facility to increase our spend on device building and for rapid deployment," Brady says.
- "We have seen a rapid uptake in demand for the product; now it's just about how fast can we ramp in the market," he adds.
By the numbers: Vero is currently generating revenue and has raised nearly $300 million to date.
- Brady declined to comment specifically on revenue and valuation.
Between the lines: Horizon and Monroe merged specifically to pursue these kinds of transactions, says Horizon COO Dan Devorsetz.
- "Venture debt is best used for growth and investment in tech beyond proof-of-concept," Devorsetz says.
- "In this industry, there has not been a whole lot of innovation and this is not only a new but innovative product," says Mishone Donelson, a managing director of life sciences at Horizon.