Medical device company TearScience announced Monday that it has secured up to $70 million in financing from HealthCare Royalty Partners.
The Morrisville company will use the money to commercialize its dry-eye diagnostic and treatment devices.
“HealthCare Royalty Partners’ funding and partnership will provide TearScience the financial resources to build on our success and fully execute on our global commercialization efforts,” said Tim Willis, president and CEO of TearScience, in a statement.
The deal allows TearScience to access a credit line of up to $70 million over an undisclosed period. HealthCare Royalty Partners is not taking an equity stake in TearScience as part of the deal.
Last month, the U.S. Food and Drug Administration approved an upgraded version of TearScience’s LipiView Ocular Surface Interferometer, which is used to diagnose the type of dry-eye disease a patient has. The company’s expects it to expand the market for the diagnostic tool and the company’s accompanying treatment device, the LipiFlow Thermal Pulsation System.
The two systems are sold as a bundle for nearly $100,000. The LipiFlow device treats the most common form of dry-eye disease by warming oil glands in the eyelids to clear obstructions. About 100 physicians are using LipiView and LipiFlow devices worldwide.
Before Monday’s announcement, privately held TearScience, which doesn’t disclose revenue figures, had raised $70 million in venture capital funding since it was founded in 2005. The company has 100 employees and consultants.