TELA Bio Announces Investment Agreement with ProMedica Innovations Venture Fund

TELA Bio Inc., a surgical reconstruction company leading the development and commercialization of OviTex Reinforced BioScaffolds (RBSs) for soft tissue repair, today announced that ProMedica, a mission-based, not-for-profit healthcare organization serving northwest Ohio and southern Michigan, has agreed to invest $1 million in TELA Bio through the ProMedica Innovations Venture Fund.
 
Under the agreement, TELA Bio and ProMedica Innovations plan to explore a strategic partnership in research and education with the surgical specialists at the ProMedica Hernia Center. The first half of the investment closes immediately, and a second tranche will close pending revenue milestones outlined in the agreement.
 
“We are pleased to announce the agreement with ProMedica Innovations and look forward to partnering on new research and education programs,” said Antony Koblish, president and CEO of TELA Bio. “Integrated delivery networks that have adopted OviTex products in place of other biologic and resorbable synthetic products have consistently experienced significant cost savings. This investment is further validation of our mission to improve patient care and surgical outcomes while reducing costs.”
 
OviTex RBSs are a distinct class of surgical implants that integrate biologic and synthetic materials in a unique embroidered construction that allows free movement of fluid and cells through the construct. The biologic material, derived from ovine rumen, allows for functional tissue remodeling, while the polymer provides additional strength and improved handling. TELA Bio first commercialized OviTex RBSs in July 2016 and over 1,700 implantations have been completed to-date in a wide range of hernia procedures using a variety of surgical techniques. 
 
“ProMedica Innovations is constantly seeking investments in healthcare companies that are positioned to improve clinical outcomes while reducing healthcare costs,” said Dr. John Pigott, chief innovations officer of ProMedica. “We are eager to explore opportunities to partner on research and education with TELA Bio, which is a great example of such a company.”