Biostage closes $4.2M investment with Chinese group, Conn. hospital
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Biostage CEO Jim McGorry (left) and Chief Medical Officer Saverio La Francesca.
Holliston-based Biostage announced Wednesday the closing of a $4.2-million private investment primarily with a Chinese investment group and a Connecticut children’s hospital co-developing a product with the company.
The company announced the private investment with a group of investors led by Bin Zhao, principal of China-based DST Capital LLC, last month.
In a statement, Zhao said the group invested for three reasons: confidence in Biostage’s technology in developing organ implants to treat diseases and conditions in the throat and trachea, the potential for the company’s technology to help children, and introducing the technology to Asian markets.
Jim McGorry, Biostage’s CEO, said the company has been working with Christine Finck of Connecticut Children’s Medical Center on developing pediatric esophageal devices.
The hospital’s investment of $100,000 represents an endorsement of that work, McGorry said.
Finck said in a statement the hospital is committed to using Biostage’s novel technology to address esophageal atresia in children.
“There is a tremendous unmet medical need for kids suffering with pediatric esophageal atresia in Connecticut and across the world,” she said. “The research happening at Connecticut using this technology shows promise of one day dramatically improving their care and condition."
The $4.2 million in investments pulls the company out of near collapse after being delisted from NASDAQ and laying off over 70 percent of their workforce after a failed investment agreement with a Texas investment firm last year.
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