PhotoThera raises $50 million to test stroke therapy

Bradley J. Fikes

May 2, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- CARLSBAD -- PhotoThera Inc. has raised $50 million from private investors, the medical device company said Thursday. The money will be used to continue human clinical trials of NeuroThera, its therapy for strokes caused by blood clots.

Stroke is the third leading cause of death in the United States, according to the American Stroke Association. Strokes caused by blood clots, or "ischemic" strokes, account for more than 80 percent of all strokes. The rest are bleeding strokes.

NeuroThera is being tested on patients who have had ischemic strokes within the last 24 hours. It's being evaluated against existing "clot buster" medications that chemically dissolve the clots.

Strokes interrupt the flow of nutrients to brain cells, which may be injured and die, possibly causing lasting impairment or death. However, if blood flow is restored promptly, the outlook for stroke patients is good.

Various methods are now used to remove blood clots, including clot-busters and mechanical devices. PhotoThera's approach is to bathe specific regions of the head with heat from an infrared laser. This nonsurgical treatment, which can be applied in a doctor's office, appears to promote healing, the company said.

Results of an earlier clinical trial, announced Feb. 20, failed to show statistically significant evidence that the therapy helped patients. But a post hoc, or after-the-fact, analysis, found significant improvement in a subgroup.

Out of 434 patients who had moderate to moderately severe strokes, a favorable outcome was found in 51.6 percent of patients. For a control group of patients who did not get the treatment, 41.9 percent of patients had a favorable result.

Post hoc analyses of clinical trials are generally regarded with skepticism, because of the possibility of bias in selecting subgroups. So government regulators emphasize selecting the criteria for a trial's success before it begins.

However, PhotoThera decided the 9.7 percent difference was significant enough to justify funding continuing clinical trials to confirm the post-hoc finding.

The funding round was led by the private equity fund Warburg Pincus, along with The Vertical Group LP; Hamilton BioVentures; Delphi Ventures; DeNovo Ventures and some individual investors from Monterey Advisors Inc.

In addition, PhotoThera, which is privately held, appointed Arthur T. Taylor president and chief executive officer. Taylor replaced Thomas C. Wilder III. The company said Wilder "decided to pursue other interests" after securing the funding.

PhotoThera was incorporated in May 1997? under the name Acculaser Inc.? The company was founded by Jackson Streeter. As a Navy Top Gun instructor and flight surgeon, Streeter was interested in using infrared energy for healing.

The company originally targeted carpal tunnel syndrome, a painful condition of the wrists, and sports-related injuries, but later shifted to treating strokes.

Contact staff writer Bradley J. Fikes at (760) 739-6641 or bfikes@nctimes.com. Read his blogs at bizblogs.nctimes.com

Newstex ID: 34607316