EastMed Inc., a medical device company based in Halifax, has secured $1.5 million in initial financing from Innovacorp and BDC Venture Capital’s Technology Seed Investments fund, a division of the Business Development Bank of Canada.
The investment will fund clinical improvements and marketing initiatives to support the launch of the company’s new product that will be marketed under the brand name Uresta™. The product is designed to help women control stress urinary incontinence (SUI).
“Our research indicates stress urinary incontinence is a global problem affecting many women of various ages. There is a large market for this product,” said Dr. Scott Farrell, president of EastMed and inventor of the Uresta™ medical device.
It is estimated that stress urinary incontinence affects approximately 43 million women in North America and 157 million women in the developed world. In the past, there has been little innovation in the area of self-management products, a category of products that includes absorbent pads and undergarments.
“This product’s innovative, patented design was carefully developed with its end user in mind,” said Ben Forcier, Innovacorp’s vice president of investment. “It successfully passed clinical trials and demonstrated an ability to considerably reduce incontinence in trial users. Uresta™ will undoubtedly transform the market for this type of product.”
Stress urinary incontinence inhibits women from playing sports, exercising, socializing and engaging in other activities. The medical condition can also severely impact a woman’s emotional well-being.
“The hands-on business guidance we have received from Innovacorp over the last 18 months has been critical to our growth and has helped us become investment ready,” said Dr. Farrell. “We are eager to move Uresta™ through its stages of development to make it available to women in North America and all over the world, and this investment is critical to helping us do just that.”
Research suggests that many women who suffer from stress urinary incontinence choose not to consult a healthcare professional to help manage their condition. Uresta™ is a minimally invasive, easy-to-use medical device that gives women the option to self-manage stress urinary incontinence. The product will be sold over the counter at pharmacies and will empower women to take control of the condition and prevent it from negatively affecting their lives.
“We’re pleased Innovacorp introduced us to EastMed. EastMed has developed a promising and innovative technology that addresses a prevalent and growing human health condition. As the incumbent solution for SUI enjoys $5 billion in annual revenue, the market potential is tremendous. From an investment perspective, this company has very strong growth potential on an international level,” said Gregory Phipps, director of technology seed investments at BDC Venture Capital.
Uresta™ will be available in Canada in the fall of 2007. The product will hit the U.S. market the following year.
About EastMed Inc.
EastMed Inc. is a medical manufacturing company dedicated to inventing and bringing to market medical innovations that cater specifically to women's health. The company’s product offerings are developed with women’s quality of life and active living in mind. EastMed is committed to providing education and medical solutions that solve problems for women to in turn improve quality of life, and increase activity levels, self-confidence, social opportunities and community involvement. The company’s first product, Uresta™, developed by Dr. Scott Farrell, offers an innovative solution for consistent, effective management of female stress incontinence. It is anticipated that the Uresta™ product will be available in the fall of 2007 and offers women an empowering alternative to traditional products.
About Innovacorp (WWW.INNOVACORP.CA)
Innovacorp helps high potential early stage Nova Scotia technology companies commercialize their technologies and succeed in the global marketplace. The organization’s High Performance Incubation (HPi)™ business model is recognized locally and internationally as a “best practice” technology commercialization approach. The model comprises three interwoven resources – incubation infrastructure, business mentoring and seed/venture capital investment – to help entrepreneurs overcome traditional hurdles to business growth.
About BDC Venture Capital (WWW.BDC.CA/VENTURECAPITAL)
BDC Venture Capital is a major venture capital investor in Canada, active at every stage of a company's development cycle, from seed through expansion. Its focus is on technology-based businesses with high growth potential that are positioned to become dominant players in their markets. Established in 1975, BDC Venture Capital has invested in over 400 firms to date. It currently manages some $750 million in venture capital investments in the life sciences, telecommunications, information technology, and advanced technology sectors, as well as investments in funds.
For more information, please contact:
Scott Farrell, President
Tel (902) 421-5691
Ben Forcier, Vice President, Investment
Cell (902) 489-8670
Greg Phipps, Director, Technology Seed Investments
BDC Venture Capital
Tel (902) 426-7868
Halifax, Nova Scotia, September 14, 2006