Med Tech Company Sotera Wireless Files for Bankruptcy

by San Antonio Attorney

Sotera Wireless, a medical technology developer that made a wireless monitor device for patients, has reportedly filed for bankruptcy.

The company developed ViSi Mobile system designed to send out data to clinicians through wireless system with the aim of enhancing patient care by providing a means to identify a deteriorating condition of the patient in advance and to facilitate in preventing undesirable situations.

Sotera has $13.1 million debt to Oxford Finance and Silicon Valley Bank, as stated on its Chapter 11 bankruptcy filing.

Even though the device was commercialized in 2014, the company was held back by performance and technical problems with its product.  Those issues forced Sotera to divert resources and caused setbacks of new device features and improvements and eventually in the decrease of revenue.

The company also got caught up in a lawsuit with Masimo. Sotera was sued by Masimo for allegedly misappropriation of trade secrets.

The financial report of Sotera shows the company lost $25.2 million last year compared with income of $526,000.

It shuttered a Series E round in 2015 adding up $59.7 million from a group of investors headed by Sutter Health and Sanderling Ventures.

The company had many agreements with different healthcare centers to utilize its wireless monitors.  It previously closed a deal with HealthTrust, which collaborates with about 1,400 facilities for acute and affiliates in locations.  It entered an agreement with Cerner to sell its device.

Sotera is trying to find a buyer and for that reason it got an appraisal of equity value amounting to $98.9 million and that the project worth was $88.8 million.

The majority of Sotera’s investors are strategic investors like Qualcomm Ventures and Sanderling Ventures.

The San Diego-based company raised about $20.7 million in April 2014, according to reports.  In 2015, it acquired Reflectance Medical.

Court papers show that Sotera has around $2.4 million in cash, or a sufficient amount to continue operations for three months.

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