Olathe An Olathe-based company that develops medical devices will receive a $375,000 investment from the Kansas Bioscience Authority, bringing its total KBA support to nearly $1.3 million since 2011.
The KBA’s executive committee approved the equity investment for Novita Therapeutics on Monday.
Novita develops medical products with the aim of spinning off self-contained companies to run clinical trials and commercialize the products, according to president and CEO Nick Franano, who has a bachelor’s degree in biology from Kansas University and a medical degree from Washington University in St. Louis.
The first three products being developed are devices to aid in dialysis treatments, treat brain aneurysms and block blood vessels that are feeding into tumors or bleeding. The products are set to be spun off under two subsidiary companies by the end of this year, Franano said.
This investment from the KBA is part of a $1.5 million round of investment that Novita is seeking to get the products to the clinical-trial stage, Franano said. The company has raised $1 million so far.
Investment from the KBA, which began when the products were just ideas, has been vital to their development, Franano said.
“You need a reliable source of investment,” Franano said. The company aims to provide the KBA with a return of five to 10 times its investment, he said, in addition to spurring economic growth.