June 1 - Miromatrix Receives Ag Board Loan

UPDATED ON JUNE 2, 2010

ST. PAUL – The state Agricultural and Economic Development Board (Ag Board) has executed an agreement to loan $250,000 in seed capital to Miromatrix Medical Inc., a Minneapolis firm that is developing human replacement organs and other biological tissue replacement products.

The company, originally based upon research led by Dr. Doris Taylor at the University of Minnesota, signed an exclusive licensing agreement with the university in February to commercialize the technology.

The Ag Board has traditionally funded expansion of manufacturing firms but is expanding its financial assistance role through a commitment to emerging high-tech businesses.

“Miromatrix has the potential to revolutionize medicine,” said Dan McElroy, commissioner of the Minnesota Department of Employment and Economic Development (DEED) and chair of the Ag Board. “The state is aggressively pursuing policies to make sure that companies like Miromatrix gain access to crucial funding to help them succeed and stay in Minnesota.”

McElroy cited the Angel Tax Credit that was signed into law by Gov. Tim Pawlenty this spring as another example of a state strategy to help emerging companies. The program will provide tax incentives to investors or funds that put money into start-up businesses specializing in high technology or new proprietary technology.

Taylor, who directs the Center for Cardiovascular Repair at the university, led a team that demonstrated the ability to create a living rat heart utilizing the decellularized matrix of a heart taken from a deceased rat. The breakthrough could make it possible for Miromatrix to one day create replacement organs using a patient's own cells, reducing the need for transplants or drugs to prevent rejection.

“I am pleased to see the commitment of state officials to building a regenerative medicine industry in Minnesota,” said Robert Cohen, a med-tech industry veteran who was named chief executive officer of Miromatrix last November. “Miromatrix hopes to contribute to this promising future by building our business with the support of local investors, employees and clinicians. We look forward to working with DEED and the Ag Board to help the company reach its full potential.”

Peter T. Bianco, director of life-science business development at Nilan Johnson Lewis PA in Minneapolis, will represent the Ag Board as an observer to the Miromatrix board of directors.

Under the terms of the loan, the state’s contribution will be matched by private investors.

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at www.PositivelyMinnesota.com. Follow us on Twitter at www.twitter.com/PositivelyMN.

Upon request, the information in this news release is available in an alternative format such as Braille, large print, audiotape or computer disk.

Minnesota Department of Employment and Economic Development
Communications Office
Phone 651/259-7161 or 1-800-657-3858 ∙ TTY 1-800-657-3973
www.PositivelyMinnesota.com