Endocare, an Irvine, CA-based company focused on tissue and tumor ablation, has raised $7 million in a private placement of common stock to Seattle-based Frazier Healthcare Ventures. In a statement, Endocare CEO Craig Davenport said the money will go toward the company’s development efforts in prostate and renal cancer cryoablation, and toward expanding its presence in the interventional radiology and oncology markets for lung and liver cancer, and in treating pain associated with metastases.
Endocare’s minimally invasive cryoablation procedures enable physicians to destroy tumors while leaving surrounding tissue intact. A recent study demonstrated that cryoablation as a first-line treatment for prostate cancer can be equally or more effective than radical prostatectomy or brachytherapy and eliminates the potentially toxic side effects of radioactive seeds; it’s also a lower-cost alternative to brachytherapy and radical surgery. CEO Davenport explains Endocare’s cryoablation technology and the company’s overall business model in this video.
In addition to the $7 million boost from Frazier Healthcare, Endocare still has about $14.5 million available from its previously announced agreement with Fusion Capital. In October 2006, Endocare signed a $16 million common stock purchase agreement with the Chicago-based institutional investor; Endocare also has available borrowing capacity through its existing credit facility with Silicon Valley Bank.