NorthStar Medical Technologies announced it has closed $100 million in secured financing funds that will primarily go toward increasing its domestic production capacity for molybdenum-99 (Mo-99).
The company received $75 million at closing from funds managed by Oberland Capital Management. NorthStar has the option to draw another $25 million before December 31, 2020.
“This funding provides NorthStar with the means to continue investment in additional RadioGenix System enhancements and to expand production capacity for non-uranium based Mo-99, including the almost complete 20,000 square foot expansion of our facility in Beloit, Wisconsin,” said Stephen Merrick, president and CEO of NorthStar, in a prepared statement. “We anticipate that the building expansion will more than double processing capacity for Mo-99 Source Vessels upon completion and FDA approval.”
RadioGenix System is an FDA approved technetium-99m (Tc-99m) generator that uses domestic and non-uranium based Mo-99 to supply customers with the Tc-99m radioisotope.
In addition to expanding domestic production capabilities for Mo-99, NorthStar will use the financing to complete programs to improve production efficiency of Mo-99 and further research and development activities.
“As the first domestic producer of Mo-99 in more than 30 years, NorthStar’s innovative technology has the potential to provide the U.S. healthcare system with reliable supply of the much-needed diagnostic imaging radioisotope Tc-99m, and we are pleased to have the opportunity to partner with NorthStar and contribute to the Company’s growth,” said Andrew Rubinstein, managing partner of Oberland Capital, in the same statement.
In February, the Department of Energy’s National Nuclear Security Administration (NNSA) announced it had appropriated up to $15 million in funding for four U.S. companies targeting the domestic production of Mo-99, including NorthStar.