The company said the capital from Series A financing, will be used to develop its proprietary, magnetically targeted drug delivery system to treat peripheral artery disease (PAD).

Devon Park Bioventures is only the investor involved in the financing.

Vascular Magnetics chairman Georges Gemayel said current treatments for PAD such as angioplasty, grafts and stents, including drug eluting stents (DES), are not durable, with arterial re-obstruction (restenosis) occurring frequently.

"The company’s approach to enhance local drug delivery has great potential to transform PAD treatment by delivering anti-restenotic drugs specifically to diseased artery sites at higher concentrations than are possible with drug eluting stents," Gemayel said.

Vascular Magnetics co-founder and COO Richard Woodward said the funds will allow them to complete the preclinical development of the system and conduct an initial clinical trial.

"We expect to begin the clinical trial in 2014," Woodward said.

The company said the initial product it is developing comprises an anti-restenosis drug, paclitaxel, that is a component of DES used primarily to treat coronary artery disease.