MEMPHIS, Tenn., April 29, 2005 (PRIMEZONE) -- Luminetx Corp. today announced it has secured $4 million in its first round of financing.
Luminetx plans to use proceeds to support the manufacturing, marketing, sales and distribution of VeinViewer, which uses infrared light and patented technologies to project real-time images of underlying veins directly onto a patient's skin. In addition, some proceeds are expected to support development efforts of other innovative technologies within the Luminetx portfolio.
"This device will change the standard of health care delivery in America," said Jim Phillips, chairman, chief executive officer and president of Luminetx. "It boosts clinician confidence and patient satisfaction. It improves care quality and efficiency of delivery."
The premier regional investment firm of Morgan Keegan, which operates 240 offices in 18 states, has invested in Luminetx through its private equity funds group. Memphis-based Morgan Keegan is part of Regions Financial Corporation, which rates among America's top 15 financial services firms with assets of $84 billion.
"Morgan Keegan is very excited about the medical device field and the VeinViewer provides solutions for a wide variety of applications addressing large markets worldwide. We are also very impressed with the Luminetx management," said Kim Jenkins, Managing Director and Director of Private Equity at Morgan Keegan.
The VeinViewer is used very much like a work light. Its adjustable head can be positioned over the part of the patient's anatomy, leaving both of the clinician's hands free to work with the patient. The company is on track to bring VeinViewer to market in the first quarter of 2006.
Clinical trials have shown the device effective in giving clinicians easier access with difficult-to-find veins. Research with pediatric patients found the device highly effective. A recent trial with blood donors with known difficult-to-find veins demonstrated the device facilitated first-time access in 100 percent of the cases.
"This trial validates the value that we expect VeinViewer to have in the blood donor population. VeinViewer holds the promise of making sure that this essential process can be performed as effectively as possible every time. It will be a boon for both patients and their caregivers in all markets," said Edward P. Scott, M.D., Lifeblood's president and medical director.
In addition to ramping up manufacturing, distribution, sales and marketing efforts for VeinViewer, Luminetx Corp. is pursuing a variety of additional clinical trials with Methodist Healthcare in Memphis and with other premier healthcare institutions around the country.
The company expects to undertake a second round of financing beginning late this year.
About Luminetx Corporation
Headquartered in the biotech district of Memphis, Tennessee, Luminetx Corporation discovers, develops, and commercializes bioscience technologies in the digital imaging, SCM, nanotech, wireless, and IP communications arenas. Luminetx's premier product, VeinViewer was recognized by Time Magazine as "one of the coolest medical inventions of the Year."