Zyga Technology, which makes two devices to treat medical conditions of the lower spine, received $10 million in financing to expand its sales force and pursue three clinical studies.
The funding mostly consists of debt: $8 million from Silicon Valley Bank, which mainly funds commercial ventures including health care. The remaining $2 million will come as equity from Zyga's existing investors, the Minnetonka-based firm said Thursday.
The money will support two studies of the Zyga Simmetry Sacroiliac Joint Fusion System. Physicians use Simmetry to fuse spinal bones and relieve the pain and symptoms from sacroiliac (SI) joint dysfunction. The SI joint is where the spine's lowermost bone meets with the pelvis, and the junction can create lower-back pain if it has too much motion.
The funding will also support a multisite study of Zyga's Glyder Facet Restoration Device, a non-fusion investigational device that restores damaged joint surfaces that cause chronic facet-joint pain. Glyder may receive approval for use in Europe later this year, and a 20-patient study in the U.S. is ongoing.
LifeScience Alley, the trade group of Minnesota's medical device and technology industry, reported this month that companies in the state are on pace to have a solid year for raising funding.
Companies had raised $186 million through the first half of the year, putting 2014 on its way to beating last year's total of $326 million. Typically, the third quarter is when Minnesota tech companies receive the most funding for ongoing ventures, according to the data.
Joe Carlson • 612-673-4779
Twitter: @_JoeCarlson
