Archus Orthopedics, the Redmond, WA-based company developing spinal implants to help people remain mobile after back surgery, has laid off most of its 45 employees and significantly scaled back its operations to conserve its remaining cash, Xconomy has learned.
The news has surprised many in the Seattle medical device industry, because Archus has a strong management and investor pedigree. Archus has raised more than $63 million in equity since its founding in 2001 from a group of big-name venture firms—MPM Capital, InterWest Partners, Polaris Venture Partners, and Johnson & Johnson Development Corporation, as well as a loan from GE Capital. Last month, Archus’ investors put in another $2.3 million through a bridge financing, although the company was aiming to raise $19.5 million, according to a regulatory filing.
Archus is sponsoring a study of 450 patients with its spinal implants, although it’s no longer recruiting patients, according to a posting on clinicaltrials.gov.