Wisconsin’s NorthStar Medical Technologies Secures $13.5 Million in Additional Funding for Radioisotope Production
MADISON, WI – September 17, 2013 – NorthStar Medical Technologies, LLC (“NorthStar”), a manufacturer and distributor of domestically-produced radioisotopes for the nuclear medicine industry, today announced the closing of a financing round totaling $13.5 million. The round was led by NorthStar’s lead investor, Hendricks Holding Company, Inc., and a group of accredited local investors. Proceeds from the financing will be used to launch commercial production of the radioisotope Molybdenum-99. Molybdenum-99 (“Mo-99”) is a radioisotope currently used in over 50,000 medical imaging procedures each day in the U.S., The entire U.S. supply of Mo-99 is currently produced using highly-enriched uranium and is imported from nuclear reactors located outside the U.S.
By launching domestic commercial production of Mo-99, NorthStar is seeking to become the first U.S.-based supplier to remedy current supply shortages as well as address security and logistical complexities associated with the production and importation of this critical radioisotope into the U.S. market.
NorthStar has partnered with the Missouri University Research Reactor (MURR) in the production of Molybdenum-99. The company expects to begin commercial production at MURR upon receiving FDA approval, and will strive to quickly produce significant quantities of Molybdenum-99 for delivery to the U.S. nuclear medicine marketplace.
“We are very excited to be in a position to begin domestic production of Molybdenum-99, a goal we have been actively working toward,” said George Messina, NorthStar’s President. “We are grateful for the support of our investors—Hendricks Holding Company, Stateline Angels and other accredited investors—in helping us reach this important milestone on the path to becoming the leader in U.S. Molybdenum-99 production. With the significant investment made by our investors, it is clear they continue to believe in NorthStar’s management team, our business model and the progress we are making with regard to the FDA approval process as well as market introduction plans. ”
According to Diane Hendricks, Chairman of Beloit-based Hendricks Holding Company, Inc., “I am pleased with the progress made by the NorthStar management team since our initial investment in 2010. I believe the Company’s business model and technology offers the U.S. nuclear medicine industry the best solution for a safe, reliable and cost-effective supply of Mo-99. NorthStar will be the first domestic producer of Mo-99, and the only producer of Mo-99 that does not utilize uranium-based materials in its production process. The ongoing success at NorthStar is helping to keep Wisconsin at the forefront of innovation in the nuclear medicine field.”