Tuesday, December 2, 2008

Boston Scientific helps fund $11M in Calif. med device maker

By Marc Songini

Natick-based Boston Scientific Corp. and two California firms have invested $11 million in West Coast medical device maker Endoscopic Technologies Inc.

The funding is part of a Series B-1 round of financing for the San Ramon, Calif.-based Endoscopic Technologies (which does business under the name Estech), according to online finance news publication VentureWire. Estech hopes to raise $25 million in all, according to a filing with the U.S. Securities and Exchange Commission.

Two San Francisco-based venture capital firms participated in this tranche, as well — Telegraph Hill Partners and Saints Capital. The filing lists the three companies as 10 percent investors.

Estech was founded in 1996 with the goal of creating the least invasive products for cardiac surgery. Currently, it has more than 45 employees, according to the company website.

Boston Scientific was not available to comment on this investment before deadline.

This isn’t the first time medical device maker Boston Scientific has invested in Estech. In 2004, Boston Scientific made an equity investment in the firm for an undisclosed amount of money. It also secured the exclusive option to acquire Estech.

In another funding last month, Boston Scientific led an investment of some $11 million in Cleveland, Ohio-based Intelect Medical Inc. The company develops treatments for traumatic brain injury.

Boston Scientific reported a 2007 net loss of $495 million on revenue of $8.4 billion.