HD+ Machine (32 pounds) Receives $50 Million in Investment Funding

The total investment was $54 million.- Mark

The really big news is that ONAMI’s lead gap fund company, Home Dialysis Plus, Limited, has received a commitment for $50M in private equity funding from Warburg-Pincus, along with venture funding with The Vertical Group, LLC - possibly the largest A-round in Oregon history!

The really big news is that ONAMI’s lead gap fund company, Home Dialysis Plus, Limited, has received a commitment for $50M in private equity funding from Warburg-Pincus, along with venture funding with The Vertical Group, LLC (possibly the largest A-round in Oregon history) to complete development and bring to market technology that will greatly improve the lives of end stage renal disease patients. This funding allows HD+ to hire additional employees enjoying better than family wages. Currently, HD+ employs 36 staff between Portland and Corvallis, and expects to have over 50 people on staff by the first quarter 2011. HD+ continues to work with researchers at the OSU Microproducts Breakthrough Institute on product development.

http://onami.createsend.com/T/ViewEmail/r/A5D0CCD429A2E929/FC982A78E20AAC09D9767B6002735221

Mark

That’s exciting news, Mark! We’ve been keeping a close eye on HD+ for quite a while and can’t wait to see what they come out with.

Here’s the HD+ official press release about the funding. :slight_smile:

Oregon-based Company Funded to Commercialize Medical Device

PORTLAND, Ore., June 15, 2010, 2010 - Home Dialysis Plus, Ltd. (HD+), a developer of devices and products for kidney dialysis, has secured a financial commitment to fund the commercialization of a new home hemodialysis system. HD+ recognizes the support of policymakers, local universities and institutions engaged in innovative solutions to healthcare as a precursor to this commercial investment.

“Today’s dialysis patients, doctors and providers are demanding improvements and cost-effective alternatives to standard treatment regimes,” said Michael Baker, CEO of HD+. “Thanks to a commitment to invest up to $50M by global private equity firm Warburg Pincus, we now have the ability to advance the HD+ technology in hopes of meeting that demand. It’s a privilege to have investors of this caliber supporting such an effort.”

“This is not only a tremendous victory for kidney dialysis patients and the cause of lowering the costs of health care, it is a victory for the ever-growing promise of nanoscience and microtechnology,” says Senator Ron Wyden. "This is an example of how targeted, smart public investment can trigger job-creating private investment in Oregon and beyond. HD+ is now poised to become a market leader in this medically-critical technology, and that can only help further establish Oregon’s reputation as a location of choice for nanoscience companies and capital.”

The commitment by Warburg Pincus will allow HD+ to further the development of a portable dialysis system that is intended to allow patients to experience the benefits of frequent dialysis, a treatment regime that more closely simulates natural kidney processes and has been shown to improve patients’ quality of life.

Currently, the standard of care for most patients is a series of four-hour treatments, three times per week at a dialysis clinic, a rigorous regime that can be both physiologically and emotionally taxing. The HD+ system is intended to offer a gentler treatment that will be easier on the patient and more affordable for dialysis providers.

As the recipients of this investment, HD+ credits Oregon Nanoscience and Microtechnologies Institute (ONAMI) and Oregon State Venture Fund for previous investments that propelled HD+ to an investor-ready position. The company has returned the favor by creating 30 new jobs within the region over the past four months.

About Home Dialysis Plus, Ltd.

Home Dialysis Plus, Ltd. (HD+) is focused on the advancement of home hemodialysis treatment for patients suffering from end-stage renal disease. Via the use of patented micro technologies, the company aims to produce an ultra patient-friendly system offering frequent dialysis treatment options that are expected to improve patient health outcomes. More information is available at http://www.homedialysisplus.com

About Warburg Pincus
Warburg Pincus is a leading global private equity firm. The firm has more than $30 billion in assets under management. Its active portfolio of more than 110 companies is highly diversified by stage, sector and geography. Warburg Pincus is a growth investor and an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $35 billion in over 600 companies in more than 30 countries.

The firm has invested more than $6.5 billion in healthcare companies, including investments in Allos Therapeutics (NASDAQ: ALTH), American Medical Systems (NASDAQ: AMMD), Bausch & Lomb, Coventry Health Care (NYSE: CVH), Eurand (NASDAQ: EURX), Euromedic International (acquired by Merrill Lynch Global Private Equity and Ares Life Sciences in 2008), Harbin Pharmaceuticals (SHA: 600664), Kyphon Inc. (acquired by Medtronic in 2007), Tornier B.V., Wright Medical Group (NASDAQ: WMGI) and Zentiva (LSE: ZEND and PSE: ZENTIVA).
The firm has offices in Beijing, Frankfurt, Hong Kong, London, Mumbai, New York, San Francisco, São Paulo, Shanghai and Tokyo. For more information, please visit www.warburgpincus.com

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HD+ could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. HD+ assumes no obligation and does not intend to update these forward-looking statements, which are subject to change without notice.

Editorial Contact: Brenda Edin, Home Dialysis Plus: communications@homedialysisplus.com

It will be interesting to get some clinical data on this system to be able to compare it to the NxStage. I greatly appreciate the ultrapure dialysate with NxStage but I would really like to have a higher clearance per session. Although there is no doubt that the Kt/V formula has its flaws, there are also certain minimums with this measure that do have a powerful meaning as we know from prior studies. If some one can ever design a portable dialysis machine with clearances similar or equal to an in center machine, then we will have finally arrived.

I know you have written some articles on the subject of your findings of dialysis using NxStage. Can you provide a linc?

Thank you Jane, Bill Peckham on DSEN has several posts on NxStage including the few that I have written. You can find it under the NxStage topic on the right hand column. I hope that this helps:

http://www.billpeckham.com/from_the_sharp_end_of_the/nxstage/