Orthox secures £12.5m for clinical trials of knee cartilage repair tech

Orthox Limited, a clinical-stage company developing medical implants to repair damaged knee articular cartilage and other orthopaedic injuries, announces the completion of a further $4.3m (£3.2m) to close its $12.5m (£9.2m) Series A financing round.

The financing will support further clinical trials of its lead product, FibroFix™, at Southmead Hospital Bristol, UK and in Budapest, Hungary.

The current financing was led by Parkwalk, the UK investor in the university spin-out sector, joined by existing shareholders including Oxford Technology & Innovations EIS Fund (OTIF), advised by Oxford Investment Consultants LLP, and Perivoli Innovations. New investors participating include experienced life science fund managers, Additio Investment Group.

Commenting on the financing, Nick Skaer, Co-founder and CEO of Orthox said: “This $12.5m Series A financing round from a range of high-quality medtech investors reflects the strong progress we are making with our FibroFix product platform.

“FibroFix is unique in emulating the functional properties of cartilage while also facilitating rapid tissue regeneration in patients suffering the debilitating effects of serious knee cartilage injuries. With our approach, there is significant bone sparing and strong tissue integration of the implant, which will result in much faster patient recovery from surgery.”

The pivotal clinical trial is expected to open for recruitment later this year with the first cohort of six patients and six months follow up. This will demonstrate initial safety following which the trial will be expanded to 75 patients with two years of follow up. The company has also submitted a regulatory dossier to the Hungarian medical device regulatory authority, OGYÉI, and is planning clinical trials sites in Budapest and additional leading European Hospitals.

Lead investor Parkwalk’s Investment Director, Neil Cameron, commented: “We see tremendous potential in Orthox’s product platform FibroFix to enable people with orthopaedic injuries to quickly bounce back into doing everyday life activities.

“Tissue regeneration to treat major cartilage defects is projected to be a $7bn market by 2024. We also see specific value in supporting athletes rapidly returning to form following sports injuries. Parkwalk is excited to be continuing our support for Orthox in this next stage of growth.”

FibroFix™ is targeted at treating injuries to the articular cartilage in the knee which covers the ends of the femur (thigh bone) and tibia (shin bone). It protects the surface of these bones and allows the joint to operate smoothly.