R3 Vascular Gains New Funding and New CEO

R3 Vascular Inc. has closed an $87 million Series B financing round and has welcomed a new leader to help foster the company’s growth.

Veteran medical device executive Christopher M. Owens is now R3 Vascular’s president and CEO, succeeding founder Kamal Ramzipoor, who has assumed the chief technology officer (CTO) role.

Deerfield Management affilitates led the Series B financing, though there was also participation from existing shareholders including 415 Capital and a strategic investor. R3 Vascular will use the proceeds to support the ELITE FDA IDE pivotal trial of its best-in-class bioresorbable scaffold, MAGNITUDE, for below-the-knee (BTK) peripheral artery disease (PAD). The funding will also support additional research and development, global regulatory submissions, scale up of manufacturing processes and initial commercialization. MAGNITUDE is a next generation bioresorbable scaffold with the potential to address one of the greatest needs for patients suffering from chronic limb-threatening ischemia due to below the knee PAD. As part of the financing, David Neustaedter, Ph.D., and Michael Hurley, M.D., from Deerfield Management are joining R3 Vascular’s Board of Directors.

R3 Vascular’s bioresorbable scaffolds are made from a unique, ultra-high molecular weight polylactic acid polymer. This polymer, combined with the company’s stent design and proprietary processing techniques, allow the sirolimus coated scaffolds to be thinner, stronger, and more flexible even at longer lengths. R3 Vascular scaffolds are specifically engineered to ensure that they gradually and predictably absorb into the tissue, leaving a more naturally functioning vessel.

“Our mission is to transform the field of peripheral interventions by providing a pioneering solution to improve the long-term health of patients around the globe,” Ramzipoor said. “At the core of our technology is an ultra-high molecular weight polylactic acid polymer with a novel microstructure. This polymer, combined with the company’s proprietary scaffold design and manufacturing capabilities provide for unprecedented mechanical properties. R3 Vascular scaffolds strike a critical balance between strength and flexibility which has enabled designs that are thinner and stronger in a wide range of diameters and lengths suitable to effectively treat complex below-the-knee lesions. We strive to become the new standard of care for PAD interventions.”

Owens has more than three decades of experience in the medical device space and most recently served as president and CEO of Gynesonics, a privately-held women’s healthcare medical device company. Prior to Gynesonics, Owens was president and CEO of IDEV Technologies, which developed the SUPERA Veritas stent system for PAD and was acquired by Abbott Laboratories. Earlier in his career, Owens was vice president of Worldwide Marketing for MicroVention, which was purchased by Terumo Corporation, and vice president of Global Research and Development for the Surgical Division of Bausch & Lomb.

“On behalf of the R3 Vascular Board of Directors, we are very pleased to complete this exciting Series B financing and welcome Chris Owens as president and CEO. Chris has extensive experience and a proven track record in building and leading category defining medical device companies,” R3 Vascular Executive Chairman Jack Springer stated. “We look forward to his contributions to move the company into its next phase of growth and beyond, while continuing to capitalize on this next-generation bioresorbable scaffold design. We would also like to acknowledge the significant accomplishments of our founder, Kamal Ramzipoor, who has worked tirelessly to establish R3 Vascular as a leader in the development and manufacturing of fully bioresorbable vascular scaffolds. His expertise and contributions as CTO will continue to shape our technology for BTK-PAD as well as for future vascular applications.”

According to the American Heart Association PAD is a narrowing of the peripheral arteries that carry blood away from the heart to other parts of the body. The most common type is lower-extremity PAD, where blood flow is reduced to the legs and feet. The National Institutes of Health estimates PAD affects 8 million to 12 million people in the United States and one in 20 Americans over the age of 50. The global peripheral vascular device market was valued at $12.9 billion in 2023 and is expected to reach $17.4 billion by 2030 with significant growth coming from the below the knee segment.

“I am very pleased to join R3 Vascular and work closely with Kamal Ramzipoor and the rest of the team to build upon the success of the company and this technology. R3 Vascular’s bioresorbable scaffolds encompass a polymer and scaffold design that drives significant next-generation advantages with our technology. This, accompanied with our scalable and flexible manufacturing processes and capabilities, contribute to the company’s mission to further improve the treatment and outcomes for patients suffering from PAD,” Owens commented. “This financing is also a testament to the belief in our evolutionary bioresorbable scaffold technology to provide treatment for this significant and growing problem of below-the-knee PAD.”

“We are excited to help bring to market one of the most promising interventions we have seen for below-the-knee peripheral artery disease and believe R3 has the potential to impact the tragically high lower extremity amputation rate,” Dr. Neustaedter added. 

R3 Vascular is a privately-held medical device company that developed a technology platform for fully bioresorbable sirolimus-coated vascular scaffolds that aim to deliver the “stent-like” support of a scaffold along with the anti-inflammatory result of sirolimus, but disappearing over time as the vessel heals. R3 Vascular is headquartered in Mountain View, Calif.          

Deerfield is an investment management firm committed to advancing healthcare through investment, information, and philanthropy. The firm works across the healthcare ecosystem to connect people, capital, ideas and technology in bold, collaborative and inclusive ways.