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"Lucent Medical Systems Receives Funding from JAFCO"
Japanese Venture Firm invests $1.2 million in Kirkland start-up
 

Kirkland, WA - Medical Systems today announced that the Tokyo-based venture capital firm JAFCO has invested $1.2 million in the Eastside medical device company. With the infusion of cash, JAFCO becomes a major shareholder in the 3-year-old company. JAFCO, a leading global venture capital firm formerly known as Japan Associated Finance Company, Ltd., has been extending its investment activity into biotechnology, medical devices, and pharmaceuticals.

Other shareholders include the University of Washington, where the company's technology originated, the Washington Research Foundation, and the Rathmann Family Foundation.

Lucent Medical's technology pairs hand-held detectors with magnetized versions of existing, high-volume disposable devices—such as catheters, feeding tubes, and breathing tubes—to reduce the overall cost of treating patients. These intelligent systems allow physicians to non-invasively locate existing disposable devices with less reliance on costly x-rays.

According to Lucent Medical Systems President and CEO Christopher Somogyi, JAFCO's investment will enable the company to further develop and market its family of proprietary products.

"We're pleased that JAFCO has recognized the significant market potential of our products," Somogyi said. "Not only does this investment represent JAFCO's recognition of the role our products will ultimately play in the marketplace; it also represents JAFCO's vote of confidence in our technology and our management strength."

Kazunori Ozaki, JAFCO's Director of International Operations, said Lucent Medical is a good match for JAFCO's investment portfolio goals for strong growth in the medical technology sector. "We believe Lucent has developed an exciting, much-needed line of products," he said. "In our view, Lucent is poised to meet key needs in a cost-conscious, global, healthcare market."

Prior to the JAFCO investment, Lucent Medical was supported by private investments and Small Business Innovative Research (SBIR) grants from the National Center for Research Resources, a division of the National Institutes of Health. Lucent also received significant funding from a license arrangement with a major U.S. supplier of enteral feeding tubes and solutions.

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