SOURCE: MedaSorb Technologies Corporation

July 02, 2008 16:20 ET

MedaSorb Technologies Corporation Raises $4.45 Million; Funds to Be Used for Current Sepsis Clinical Study and to Prepare for CE Mark Application

MONMOUTH JUNCTION, NJ--(Marketwire - July 2, 2008) - MedaSorb Technologies Corporation (OTCBB: MSBT) (FRANKFURT: HQE), a medical device company focused on the development of its platform technology for the removal of toxins from blood and physiologic fluids, announced today the closing of a $4.45 million private placement of its Series B 10% Cumulative Convertible Preferred Stock. The funding is targeted for its Sepsis Study currently underway in Germany. In addition, the funding will allow MedaSorb to support the CE Mark application process and position it for commercialization.

The private placement was led by the NJTC Venture Fund. Additional institutional participants included Cahn Medical Technologies, LLC, Adelson Partners, LLC, as well as previous institutional investors, Alpha Capital and Ellis International. The amount raised includes $175,000 in principal debt that was converted into the placement. Our new investors provide MedaSorb broader access to capital as the company grows, and present the company with opportunities to commercialize and monetize our products.

"Working to Save Lives is our number one goal, and we believe our adsorbent technology represents a novel and effective adjunctive therapeutic approach to treating sepsis," said Al Kraus President/CEO. "We believe this financing demonstrates a strong interest in the potential of our technology, and will enable us to continue our on going clinical study in Europe enrolling up to 80 patients. We anticipate submitting clinical results in 2009 and will seek CE Mark regulatory approval."

The company has identified multiple potential applications/opportunities for its technology and believes it is well positioned for success in creating blood purification solutions for patients and physicians.

About Sepsis

Sepsis is a condition that can result from the body's over-response to infection or injury. Sepsis has a mortality rate of up to 60% and affects approximately 2 million patients per year in the U.S. and Europe alone. The cost to treat these patients is in excess of $36 Billion. It is the second most frequent cause of death in hospitals outside the cardiac ICU. Severe sepsis is often more dangerous than the initial infection and, without rapid diagnosis and intervention, can develop within a matter of hours, leading to septic shock which can cause temporary or permanent damage to multiple organs or even death.

About MedaSorb

MedaSorb Technologies Corporation is a medical device company preparing to commercialize blood purification technology that effectively removes toxic compounds from blood and physiologic fluids. MedaSorb's initial products, CytoSorb™ and BetaSorb™, are known medically as hemoperfusion devices and incorporate proprietary adsorbent polymer technology. Management believes the potential healthcare applications for its products include: adjunctive treatment of sepsis, prevention of damage to organs donated for transplant prior to organ harvest, prevention of post-operative complications of cardiac surgery, and the short- and long-term treatment of kidney failure. MedaSorb is headquartered in Monmouth Junction, New Jersey. http://www.medasorb.com/

Safe Harbor Statement

This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may differ materially from those expressed or implied by the statements herein. MedaSorb Technologies Corporation believes that its primary risk factors include, but are not limited to: ability to successfully develop commercial operations; dependence on key personnel; acceptance of the Company's medical devices in the marketplace; the outcome of pending and potential litigation; obtaining government approvals, including required CE Mark and FDA approvals; compliance with governmental regulations; reliance on research and testing facilities of various universities and institutions; the ability to obtain adequate financing in the future when needed; product liability risks; limited manufacturing experience; limited marketing, sales and distribution experience; market acceptance of the Company's products; competition; unexpected changes in technologies and technological advances; and other factors detailed in the Company's Current Report on Form 8-K filed with the SEC on July 1, 2008, which is available at http://www.sec.gov.

Contact Information

  • Contact:
    For Investor Relations
    MedaSorb Technologies Corporation
    David Lamadrid
    (732) 329-8885 ext. 816
    DavidL@medasorb.com