[Posted on March 18, 2008 - 5:00 PM]
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DiggBlood monitoring device maker Luminous Medical Inc. on Tuesday announced that it raised $23.5 million in a second round of venture capital to advance regulatory approval of its lead product for continuous automated glucose measurement in hospital patients.
The three-year-old Carlsbad, Calif., spinoff of InLight Solutions Inc. of Albuquerque, N.M., raised the money from new investors Adams Street Partners of Chicago, which led the round, RiverVest Venture Partners of St. Louis and Finistere Ventures of San Diego, along with previous investors De Novo Ventures of Palo Alto, Calif., and Latterell Venture Partners of San Francisco. The new money comes after completing a prototype of a proprietary device that uses a peripheral catheter to monitor glucose levels in patients already hooked up to intravenous units in intensive care and other critical care settings.
Luminous chief operating officer Ries Robinson said the company used the proceeds of its $9 million Series A round, secured in late 2005, to home in on technology originated at InLight and spun off along with other promising technologies as independent companies. In addition to Luminous, InLight spawned venture-backed companies featuring its infrared spectroscopy in applications for alcohol testing and biometric sensors.
"InLight had a variety of technologies that were applicable to different sectors, and we created independent companies to realize the most value of each one," Robinson said. "With the A round we were able to complete all aspects of the technology feasibility studies and complete a product, and we anticipate this round will take us through FDA trials for both safety and efficacy."
Luminous' product (right) is used in critically ill patients when precise glucose control can significantly reduce complications, shorten the length of hospitalization and prevent death. The product requires no user intervention or loss of blood because patients are already hooked up to outside equipment, so there is little additional safety risk, lowering the barrier for regulatory approval.Adams Street general partner Mike Lynn said he found the clinical evidence pointing to the need for an automated glucose monitoring product compelling, and he said Luminous has demonstrated that it is in a position to lead the market.
By using spectroscopy to measure glucose levels, Luminous' product does not interact chemically with patients' blood, allowing it to be returned in a closed loop already established for other medical needs. The system measures glucose and other blood chemicals spectroscopically as it passes through a disposable one-time sensor that the company will sell, providing recurring revenue in addition to capital equipment sales.
Robinson said initial sales efforts will focus on intensive care units for critically ill patients, but that the company sees an opportunity in so-called step-down units in monitoring patients recovering from routine surgeries, such as hip replacements. Robinson said that in addition to patients with medical histories of blood sugar disorders, the stress of surgery can create new blood sugar problems.
Robinson said the company specifically sought investors familiar with taking new devices through the regulatory process. Although he would not disclose a valuation for the round, he said it came at an increase to the company's previous investment.
Luminous did not use an outside financial adviser in putting the round together, and had legal work on closing the round from Fred Muto of Cooley Godward Kronish LLP in San Diego. - Clifford Carlsen
