Acessa Health said today that it closed the bankruptcy buyout of Halt Medical and promptly raised a Series A round worth $30 million.
The Acessa device is designed to treat uterine fibroids using radiofrequency ablation. Its successor namesake emerged after a Delaware federal bankruptcy judge earlier this month approved the bankruptcy sale, which was designed to keep the Acessa treatment on the market.
Today the company said it plans to use the first tranche of the Series A round to expand Acessa’s clinical portfolio, “develop next-generation technology and broaden commercial adoption of the Acessa procedure.”
“This is a great day for the millions of women currently suffering from symptomatic fibroids, who will now have access to a less invasive, uterine-sparing solution,” CEO Kim Bridges said in prepared remarks. “With substantial clinical and commercial momentum behind us, together with an exceptional investor base, Acessa is poised to improve the standard of care in a clinical segment that has not seen significant innovation in decades.”
Dr. Bruce Lee, who invented the technology, is joining Acessa Health as a medical advisor.
“This is an exciting new chapter for Acessa and the many millions of women around the world who suffer from symptomatic fibroids,” Lee added. “I’m thrilled to be part of the new Acessa Health team, advancing this important technology, and making the Acessa procedure available to women who stand to benefit from it.”
The Brentwood, Calif.-based women’s health company filed for Chapter 11 bankruptcy protection in April, citing assets valued at $2.2 million as of March 31 but liabilities of about $156.3 million, including a $497,000 severance payment to former chief executive Jeffrey Cohen.
Halt, which employs 17 workers, lined up an acquirer to float a $4 million bridge loan to sustain operations during the sale process to stalking horse bidder Acessa Health. Most employees will transfer to Acessa Health, leaving the Halt Medical shell behind for a Chapter 11 wind-down. The company is now located in Austin, Texas.
In February Halt logged a reimbursement win that extended coverage of Acessa under Medicaid to patients in Texas, Ohio, Michigan, Indiana and Washington, D.C.
