Canary Medical secures US $26M financing led by Quark Ventures

Canary Medical Inc. has secured a US $26 million first institutional round of financing led by Quark Ventures with the participation of BioScience Managers and Relentless Pursuit Partners’ Venture Fund.

The investment is to be closed in two tranches. Quark Venture Inc. and GF Securities, through their Global Health Sciences Fund (GHS), committed US $10 million.

Founded in 2003 by Jeremy Curnock Cook, the former head of the Biosciences Unit at Rothschild Asset Management, Melbourne, Australia based BioScience Managers is part of the PhillipCapital Group. In September 2017, BioScience Managers committed AUS $10M to a joint venture with Canary Medical, CHARM Informatics Pty Ltd., to serve as a platform to collect and monetize data from implantable and wearable medical devices.

Led by Dr. William Hunter, former CEOs of Angiotech and Cardiome Pharma, Vancouver based Canary Medical is a medical data company. The Canary Health Implantable Reporting Processor (CHIRP) uses innovative sensor and novel communication technology in medical devices to enable remote patient monitoring.

photo credit: Canary Medical

News Release

New medical device platform takes flight: Global Health Sciences Fund invests in Canary Medical’s proprietary, “smart” implant technology designed to improve outcomes in post-surgical patients

The Canary Health Implantable Reporting Processor (CHIRP) uses innovative sensor and novel communication technology in medical devices to enable remote patient monitoring. “Smart” medical devices will self-report on everything from patient activity to recovery and even treatment failure, without the need for physician intervention or a dependence upon patient compliance.

VANCOUVER, British Columbia, May 17, 2018 (GLOBE NEWSWIRE) — Today, Quark Venture Inc. and GF Securities, through their Global Health Sciences Fund (GHS), announced a US$10 million investment in Canary Medical Inc., a medical data company dedicated to improved healthcare outcomes through the use of proprietary, “smart” medical devices. The investment is part of two tranches for an aggregate US$26 million, which also includes BioScience Managers and Relentless Pursuit Partners’ Venture Fund.

The Global Orthopedic Implants Market was valued at greater than $47 billion in 2016, and is expected to grow to $75 billion by 2023. This translates to nearly $1 billion worth of medical implants currently inserted surgically into patients on a weekly basis1. With few exceptions, these devices are silent with no monitoring capability. Canary will provide real-time feedback through its CHIRP™ system on an implant’s performance to be analyzed using Canary’s Data Analytics™ software. Their resulting medical grade, super data set from the Canary implant and connected informatics network will enable better healthcare delivery for clinicians – passively and remotely – translating to improved patient outcomes and reduced healthcare costs.

“One of the problems with wearable health and fitness monitors is that people forget to wear them, wear them only when they’re going to be active, or get bored with them and stash them away in their night table drawer,” says Bill Hunter, CEO of Canary Medical. “Wearable data is just not adequate, accurate, or continuous enough to base important medical decisions upon it; the Canary system eliminates all these problems. The funding provided by this financing will enable development of the ‘smart’ artificial knee implant through to commercial release. We have multiple use cases for the system; in addition to a variety of orthopaedic applications, we will be tackling vascular implants next.”

“Following surgical implant procedures, patients regularly ask themselves things such as ‘Is this normal?’ and ‘Is my medical device implant working properly?’ The medical data collected by the Canary sensors will improve rehabilitation and alert clinicians to when a re-intervention is necessary before it is an emergency, thereby improving patient outcomes and doing so at a lower cost,” said Karimah Es Sabar, Chief Executive Officer of Quark Venture and Director of GHS Fund. “Canary’s innovative system is a compelling example of Canadian-based disruptive technology that is at the forefront of digital diagnostics and healthcare management. Dr. Hunter’s expertise and reputation, and the subject-matter expert leaders he has teamed with, provide a strong foundation for investors who understand that the success of the next wave of medical technology requires out of hospital monitoring,” said Ms. Es Sabar.

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1 Reference: https://www.alliedmarketresearch.com/orthopedic-implants-market

About Canary Medical Inc.

Canary Medical was conceived and created by a team of surgeons, medical device developers, and IoT experts with the vision that (1) healthcare transformation requires better and cheaper healthcare data, (2) better monitoring and better data will produce better outcomes at lower costs, and (3) patients own their healthcare data and should be compensated for its use. Canary Medical’s patented implant and data management ecosystem technology provides the vehicle to implement its vision. Canary is led by Bill Hunter, MD, a seasoned entrepreneur with previous experience founding and leading a successful medical device company based on breakthrough technology (Angiotech, which developed the TAXUS® Drug-coated coronary stent implanted in millions of patients worldwide). Canary’s team is globally regarded for its medical device design and development expertise. For more information, visit http://canarymedical.com/

About Global Health Sciences Fund

Global Health Sciences Fund was jointly established by Quark Venture Inc. and GF Securities in 2016. Global Health Sciences Fund is a health sciences venture fund that invests globally in a diversified portfolio of innovative biotechnology and health sciences companies that are addressing unmet medical needs through innovations in drug development, medical devices, health IT and emerging convergent technologies. For information about Quark Venture or GF Securities visit https://www.quarkventure.com/

For more information about Canary contact Dina Darsaklis at cdarsaklis@canarymedical.com

For more information about Quark Venture contact Kaley Wilson at kwilson@quarkventure.com


Ted Liu
Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, TechnologyMetals.ca, GoldSilverMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of sophisticated and advanced CPE Media Private Capital Dealbase. Ted is President of CPE Media Inc., Canada's independent, trusted and unbiased data provider tracking Canadian VC/PE, private capital industry and public market.
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