Privately-held Tela Bio said this week that it landed a $1 million investment from ProMedica, a not-for-profit healthcare group serving northwest Ohio and southern Michigan.
According to the deal, Tela Bio and ProMedica Innovations Venture Fund plan to strike a strategic relationship to educate surgical specialists at the ProMedica Hernia Center using Tela Bio’s regenerative surgical implants.
The first $500,000 will go to Tela Bio immediately, the company reported, and a second tranche will close contingent upon revenue milestones.
The Malvern, Pa.-based company’s device combines biologic and synthetic materials in an embroidered implant that allows fluid and cells to move freely. The implants are designed for ventral hernia repair and abdominal wall reconstruction. Tela Bio first launched its OviTex reinforced bioscaffold in July 2016.
“We are pleased to announce the agreement with ProMedica Innovations and look forward to partnering on new research and education programs,” Tela Bio’s president & CEO Antony Koblish said in prepared remarks. “Integrated delivery networks that have adopted OviTex products in place of other biologic and resorbable synthetic products have consistently experienced significant cost savings. This investment is further validation of our mission to improve patient care and surgical outcomes while reducing costs.”
“ProMedica Innovations is constantly seeking investments in healthcare companies that are positioned to improve clinical outcomes while reducing healthcare costs,” Dr. John Pigott, chief innovations officer of ProMedica, added. “We are eager to explore opportunities to partner on research and education with Tela Bio, which is a great example of such a company.”