Broncus Technologies pulled its initial public offering plans last week and now intends to line up venture debt financing, VentureWire reported.

Mountain View, Calif.-based Broncus is developing a minimally invasive treatment for emphysema. It filed to go public in November but withdrew its IPO plans because of weak market conditions. Kenneth Haas, a Broncus board member and partner with Broncus investor Abingworth Management, said a venture round will give it more flexibility in case the next equity financing takes longer than expected.

Abingworth owns 15.3 percent of Broncus’ stock. HBM BioVentures is the top venture backer with 26.2 percent and Menlo Ventures owns 12.8%. Broncus expects to finish enrollment in a clinical trial by the end of the year, lining up a product launch possibly by 2010.