A medical device company seeking to commercialize a less invasive treatment for hydrocephalus — a condition caused by excess fluid buildup in the brain — secured $85 million in Series C financing on Thursday.
Boston-based CereVasc has now raised more than $200 million in capital since its founding 12 years ago. Its Series C round was led by Piper Sandler Merchant Banking, with participation from Medtronic, Johnson & Johnson Innovation, Bain Capital and Perceptive Xontogeny Venture Funds.
The company was originally started by Tufts Medical Center physicians Drs. Carl Heilman and Adel Malek to address shortcomings in the standard treatment for hydrocephalus.
The condition affects more than a million Americans, but most patients go untreated because the standard surgical treatment — called a shunt procedure — is quite invasive, pointed out CereVasc CEO Dan Levangie.
“The current treatment for hydrocephalus is about 60 years old. It’s an invasive neurosurgical procedure that requires drilling a burr hole in the skull, placing a tube through that hole down into the brain, and then connecting that tube to a long catheter that gets tunneled under the skin all the way down to the abdomen. So the patient has cerebrospinal fluid from the brain flowing through this long catheter system being reabsorbed into the peritoneum, where the catheter ends — and the rate of complication following that surgery is among the highest in all of neurosurgery,” he explained.
He said 30-40% of patients require additional surgeries within the first one to two years because of infections, drainage issues or device failures.
Many patients are apprehensive about this procedure — but if hydrocephalus is left untreated, it can cause symptoms ranging from chronic headaches and cognitive impairment to severe neurological complications, Levangie noted.
CereVasc’s eShunt system is designed to provide a less invasive alternative. Rather than requiring open brain surgery, the company’s device is delivered through a catheter inserted in a vein in the groin and guided to the base of the brain. There, a small implant creates a pathway that allows excess cerebrospinal fluid to drain into the body’s venous system, mimicking the brain’s natural fluid reabsorption process.
Levangie said CereVasc has treated more than 200 patients to date and is seeing encouraging safety and efficacy results compared to shunt procedures.
The company is using its new influx of capital to complete its pivotal clinical trial. Levangie noted that CereVasc expects to submit its application for FDA premarket approval in 2027, and if approved, begin bringing the product to market in 2028.
He believes a less invasive approach could unlock a significant market opportunity, noting that fewer than 20% of hydrocephalus patients currently receive treatment.
Photo: MirageC, Getty Images
