Axonics Modulation Technologies, Inc., developer of miniaturized implantable Sacral Neuromodulation technology, announced today that it has completed a $38.5 million Series B financing.

Proceeds from the financing will be used to conduct a multi-center clinical study in Overactive Bladder patients anticipated to begin in early 2016 in Europe and North America.

Sacral Neuromodulation therapy is FDA-approved and has been proven to be safe and effective for patients suffering from various chronic conditions, including Overactive Bladder, Fecal Incontinence and Urinary Retention. These conditions affect over 100 million adults in the world.

New investors Advent Life Sciences, based in London and Cormorant Asset Management, based in Boston, joined the existing syndicate led by Edmond de Rothschild Investment Partners of Paris, France. Existing investors NeoMed Management based in Geneva, Beijing-based Legend Capital, a venture capital arm of Legend Holdings, Ltd., Valencia, CA- based The Alfred E. Mann Foundation and a select group of private individuals also participated. Since inception in late 2013, Axonics has raised a total of $59 million in capital.

Raymond W. Cohen, Chief Executive Officer of Axonics said, “We appreciate that this group of world-class investors recognizes the quality work done by Axonics to create a state-of-the-art rechargeable implantable Sacral Neuromodulation (SNM) System. The Axonics device is 60 percent smaller than the only other marketed SNM device and also the first rechargeable device available for this market. Moreover, our implanted pulse generator promises to last over 15 years in the body – 3x longer than the other SNM device on the market today. Revenue from the sale of SNM devices is estimated to be approaching $600 million annually with nearly 30,000 devices implanted in patients in 2014 alone. Revenue for this market is projected to grow to over $1 billion by 2019. With only one player in the SNM market today, this represents a significant opportunity for Axonics stakeholders and patients alike.”

Shahzad Malik, M.D. of Advent Life Sciences will join the Axonics Board of Directors serving alongside Chairman, Raphaël Wisniewski of Edmond de Rothschild Investment Partners and other directors including Erik Amble of NeoMed, Darren Cai of Legend, John Petrovich and Barry Keenan of The Alfred E. Mann Foundation and Axonics CEO Raymond W. Cohen.