The Venture Codex

Participated · Series C · Sep 2023

Osteal Therapeutics is a clinical-stage biopharmaceutical company developing novel combination drug/device therapies to treat orthopedic infections and their consequences. Its lead candidate, VT-X7, is a seven-day vancomycin and tobramycin irrigation drug/device designed to deliver antibiotics directly to the joint space to treat periprosthetic joint infection (PJI). In clinical studies, 100% of patients were treated and received a new permanent joint prosthesis in seven days with more than 90% remaining infection-free after one year. VT-X7 has been evaluated in two multicenter randomized controlled trials, APEX and APEX-2; APEX met its primary endpoint in 2023 and APEX-2 recently met its primary endpoint and will be completed in late 2024. The FDA has granted VT-X7 Breakthrough Therapy, Orphan Drug, Fast Track, and Qualified Infectious Disease Product designations, and the company expects to seek approval upon APEX-2 completion. Osteal leverages locally delivered, concentrated antimicrobials and repurposes approved drugs for new local-delivery routes to address biofilm-driven musculoskeletal infections. Osteal Therapeutics is a Dallas, TX-based clinical-stage biopharmaceutical company developing musculoskeletal therapeutics to treat orthopedic infections and their consequences. Its lead candidate, VT-X7, is a locally delivered antimicrobial in Phase 2 development aimed at treating periprosthetic joint infections (PJI). The company leverages concentrated, locally delivered antimicrobials to combat bacterial biofilms while minimizing off-target tissue exposure and adverse effects. Osteal employs a low-risk development approach by repurposing approved drugs with known safety and efficacy profiles for new routes of local delivery. It recently closed a $23M Series C financing to fund its next steps. Proceeds will support an NDA submission to the FDA and accelerate preparation for VT-X7's commercial launch; the company is led by CEO and President David Thompson. Osteal Therapeutics is a clinical-stage biopharmaceutical company creating a new category of combination therapies to treat musculoskeletal infections by delivering concentrated, locally applied antimicrobials to target biofilms. Its lead candidate, VT-X7, is a drug/device combination (vancomycin HCl and tobramycin sulfate for irrigation) designed as a seven-day therapy to deliver antibiotics directly to the joint space and surrounding tissue to treat chronic periprosthetic joint infection (PJI). VT-X7 completed an open-label Phase 2 trial in which 100% of VT-X7 patients were treated and received a new permanent joint prosthesis in seven days and 93% remained infection-free at one year. The company is currently enrolling APEX, a randomized controlled study of VT-X7 versus the current standard of care (two-stage exchange arthroplasty). The FDA has granted VT-X7 Orphan Drug, Fast Track, and Qualified Infectious Disease Product designations. Osteal plans to use new capital to advance VT-X7 into later-stage clinical trials and to fund additional research programs.

Participated · Series C · Dec 2022

BrightSpec commercializes MRR, a novel spectroscopic technique that rapidly and definitively characterizes the unique three-dimensional structures of small molecules, including structural, spatial, and isotopic isomers. MRR leverages computational quantum chemistry to predict and validate structures without the need for reference standards. The company maintains an extensive database of calculated and validated structural spectra and offers tools for rapid identification of unknown compounds in crude samples. Its workflow enables high-throughput analysis without chromatography, providing quantitation directly from crude mixtures in minutes, and can be paired with software and minimal sample prep to deploy targeted instruments outside of analytical labs. BrightSpec reports customers across the pharmaceutical, consumer and beverage, and industrial chemical industries. The company intends to use the Series C proceeds to expand development efforts and broaden its business reach.

Participated · Equity · Dec 2020

Freespira produces Freespira, an FDA-cleared digital therapeutic proven to reduce or eliminate panic attack, panic disorder and PTSD symptoms in 28 days through a respiratory-normalization protocol. The company offers an at-home, drug-free, evidence-based solution and markets to health plans, self-insured employers and the Veterans Administration. Multiple peer-reviewed trials reported strong outcomes: a VA trial showed significant PTSD severity reductions in 85% of subjects post-treatment (50% remission at six months, 84% patient satisfaction, 77% adherence); a multi-center trial found clinically significant panic symptom reduction in 82% of subjects at 12 months (84% adherence, 88% satisfaction); and an Allegheny Health Network study reported 91% of patients with significant symptom reduction at 12 months plus substantial insurance cost savings. The company changed its name from Palo Alto Health Sciences to Freespira, Inc. to reflect its mission to improve quality of life and reduce medical spend. Freespira has announced plans to commercialize broadly and expand access among veterans, first responders, frontline healthcare workers, employers and payors.

Participated · Equity · Sep 2018

Providence Medical Technology develops tissue-sparing surgical equipment and implants for posterior cervical fusion surgery. The company’s flagship DTRAX® Spinal Instrumentation System is indicated for posterior cervical fusion and was recently cleared by the FDA. The DTRAX system is approved at over 1,800 hospitals in the United States. Other products include CAVUX® intervertebral implants, ALLY® bone and facet screws, and ENTRUS™ Allograft Bone; all products are sterile-packaged and single-use. Providence closed a $25M equity financing and has raised a total of $53M in equity financing since 2008. The company plans to use the funds to accelerate commercial expansion and clinical development of its DTRAX line. Providence is led by CEO Jeff Smith and is based in Pleasanton, California. Providence Medical Technology develops tissue-sparing cervical-fusion instruments and implants, centered on its single-use DTRAX platform and CAVUX cervical cages. The company also markets ALLY screw systems and BIOLOGIX allograft bone as part of its cervical-fusion product family. Led by CEO Jeff Smith, Providence focuses on commercializing technologies that improve cervical spine procedures for physicians and patients. The company closed a $10.5M equity financing to advance commercialization and expand its cervical-fusion portfolio. The financing will support further commercialization efforts and continued product portfolio growth. Providence is based in Walnut Creek, California. Providence Medical Technology develops the DTRAX platform of single-use, tissue-sparing implants and instruments for cervical fusion to treat cervical degenerative disc disease. The company focuses on differentiated devices intended to improve clinical outcomes, minimize complications, increase procedural efficiency, and reduce recovery times. Providence plans to expand its portfolio to address the majority of cervical pathologies requiring surgery and to broaden its R&D activities. Proceeds from its recent financing will be used to further commercialize the DTRAX products and to scale global sales and marketing capabilities. The company is privately held and targets the roughly $1 billion worldwide cervical spine market. Providence also appointed Jason Hoffman as Vice President of Global Sales to lead expanded domestic and international commercialization efforts. Providence Medical Technology develops minimally invasive solutions addressing the cervical spine market and is commercializing the DTRAX platform, including the DTRAX Cervical Cage. The DTRAX Cervical Cage received 510(k) clearance earlier in the year, and U.S. surgeon training began in November 2013. The company reports its U.S. launch is underway and surgeon acceptance of indirect decompression and fusion has been encouraging. Providence has signed over 15 independent distributors and now has over 150 sales representatives bringing the technology to spine surgeons. Proceeds from the recent financing are intended to fund U.S. sales, marketing, training, and clinical activities, including hiring direct sales employees and initiating prospective clinical trials. The company is targeting the approximately $1 billion worldwide cervical spine market.