The medical device sector is a curious blend of high-level science, elegant design and consumer appeal, as Thursday's $69 million
funding of
Pelikan Technologies Inc. demonstrates.
The deal for the integrated blood sampling and
monitoring device for people with diabetes is the third-largest venture deal in the sector this year, according to the
VCDeal database. Each of the most heavily funded companies in the sector have targeted areas where there is a large medical market, but where consumer choice will play a large part in the growth of the market and ultimate success of individual products.
Pelikan's technology promises greater ease-of-use, less pain and greater reliability for consumers that must manage their blood glucose levels with as many as 10 blood tests a day. Backer
Dennis Henner (right) of Clarus Ventures, which led the round, noted that the firm was attracted to Pelikan's combination of state-of-the-art science and innovative product design.
As the third-largest medical device deal of 2007, Pelikan's investment trails only Globus Medical Inc., which
raised $110 million in August for spinal fusion products and other technology to relieve back pain, and Sientra Inc., which
raised $80 million in April for breast augmentation products. Spine products are expected to be one of the fastest-growing areas in medical devices as aging baby boomers demand greater mobility and pain-free active lifestyles.
Pelikan's deal brings total venture investment in the six-year-old company to $145 million and will allow it to complete development and launch marketing of its integrated monitoring product as early as next year.
- Clifford Carlsen
See Dec. 6 story from TheDeal.comSee VCDeal databaseSee Aug. 24 story from TheDeal.comSee April 18 story from The Deal.com
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