Scottish Synthetic Bone Graft Company Secures $4.8M in Funding

Scottish synthetic bone graft developer Sirakoss has secured $4.8 million in Series-A financing from a syndicate of investors led by Epidarex Capital.

Synthetic bone grafts are used in trauma, spinal and dental surgery to fuse bones together to correct congenital or degenerative conditions (such as curvature of the spine) or following a traumatic injury where the bone fails to heal.

The alternative approach against which all other options are measured is autograft, where healthy bone is harvested from the patient’s hip and replanted at the defect site. The amount of bone available for grafting is limited, particularly in children, and requires two invasive operative procedures, increasing the risk to patients and the cost to hospitals. Other alternatives have seen products derived from cadaver bone harvested at the morgue, but these can be inconsistent in their performance.

“We are delighted to have closed this investment with Epidarex Capital as this validates the company’s belief in its synthetic bone graft technology and the clearly defined commercial opportunity that this represents within a $2.5 billion global market,” Sirakoss CEO Brian Butchart said. “This investment will enable Sirakoss to complete product development and to implement its regulatory strategy for both the European and U.S. markets.”

The Sirakoss MaxSiTM Graft range of products is entirely synthetic, containing no animal or human tissue and can be manufactured in consistent batches, according to the company. Screening studies with the MaxSiTM Graft products from Sirakoss demonstrate rapid, controlled bone formation at very early time points, indicative of early patient recovery. Surgeons’ feedback on performance data and handling properties of the Sirakoss material, when compared to existing products, has been encouraging, the company reports.

“We were impressed with the Sirakoss technology which can offer surgeons a materials science alternative to pharmacological products for obtaining rapid bone repair and fusion,” said Professor Bill Bonfield, chairman of the Armourers & Brasiers Venture Prize panel. “The company has also recognized the importance of melding both scientific and commercial skills sets. The Sirakoss technology has the potential to benefit thousands of people each year and it also fits well with our aim to encourage innovative scientific entrepreneurship in the U.K.”

Other syndicate investors include the Scottish Investment Bank, the investment arm of Scottish Enterprise, and the London-based Worshipful Company of Armourers & Brasiers plus existing shareholders. This equity investment also secures a further £940,000 Biomedical Catalyst award from Innovate UK (formerly known as the Technology Strategy Board), which was previously awarded to Sirakoss in a competitive funding program and was subject to matching investment.

“Congratulations to Sirakoss for securing this investment deal, allowing it to further realize its plans both in Europe and the U.S.A.,” said Eleanor Mitchell, director of Commercialization at Scottish Enterprise. “Scottish Enterprise has assisted throughout the journey with an integrated package of support, including early proof of concept activities at the University of Aberdeen, and later the company with SMART: SCOTLAND grant support for feasibility testing, assistance in scaling up in global markets and most recently, investment via the Scottish Investment Bank.”

Sirakoss was formed to October 2010 and following commercial validation the technology was spun out of the University of Aberdeen in May 2011. The company successfully completed proof of concept in 2012 and raised seed fund investment last year.