The financing was led by PTV Sciences of Austin, Texas, and was joined by new investors Westfield Capital and Heron Capital. Existing investors participating in the funding include the Vertical Group, EDF Ventures, MB Ventures and New Markets Growth Fund.
"We are certainly very pleased with the high level of interest and confidence expressed by our new and existing investors," said Tom Roueche, president and CEO of BioSET. "This financing will allow us to commence human clinical trials with our lead synthetic B2A growth factor product for spine fusion, and also will permit the company to accelerate the pre-clinical development of additional growth factor mimetics the company has identified."
BioSET's lead product is an osteoinductive bone graft material that is comprised of a proprietary peptide signaling molecule (B2A) coated onto a ceramic bone void filler material. Bone graft materials are predominately used in spine fusion procedures, a surgical option for patients with debilitating back pain associated with degenerative disc disease. Industry analysts estimate the U.S. market for growth factor based bone graft products was in excess of $650 million in 2006, growing at 33 percent annually. The estimated market in 2006 for all bone substitute materials is approximately $1.4 billion.