Participation of Accelmed, a leading medical device investor,
validates the compelling market potential of the company’s EsophyX
technology
REDMOND, Wash.–(BUSINESS WIRE)–EndoGastric Solutions® today announced the closing of its
Series I financing at a total of $45 million. Accelmed, a leading growth
capital medical device investor, joined the round, which had previously
raised $30.5 million. The company intends to use the proceeds from this
financing to further accelerate commercialization efforts in support of
the growing market demand for its Transoral Incisionless Fundoplication
(TIF® 2.0) procedure performed with the EsophyX® device. Uri Geiger,
Ph.D., Co-Founder and Managing Partner of Accelmed, will join the
EndoGastric Solutions Board of Directors.
“TIF 2.0 provides an effective and durable solution to a significant
unmet clinical need in the management of patients suffering from
gastroesophageal reflux disease (GERD),” said Dr. Geiger. “Based on a
growing body of strong clinical data and the increased market demand for
a minimally invasive treatment option, Accelmed believes that
EndoGastric Solutions is well positioned to capture a significant
portion of the market and effectively treat the millions of patients
suffering from GERD. EndoGastric Solutions has an outstanding management
team that is well positioned to lead it through its accelerated growth.
We welcome the opportunity to support the company and its management in
achieving its growth objectives and I am very pleased to join its Board
of Directors.”
The TIF 2.0 procedure is a minimally invasive endoscopic intervention
performed with the EsophyX device, which enables anatomical correction
of the gastroesophageal valve without incisions or the attendant
complications associated with traditional fundoplication. With more than
22,000 procedures performed worldwide, TIF 2.0 offers patients looking
for an alternative to traditional surgery or medication an effective
treatment option to treat the underlying anatomical cause of GERD.
“With the closing of this round, we have established a strong financial
foundation from which to leverage the significant growth opportunities
ahead of us and achieve long-term commercial viability,” said Skip
Baldino, President and CEO of EndoGastric Solutions. “We are also very
excited to welcome Dr. Geiger to the Board of Directors and believe that
his demonstrated track record of success in the medical device industry
will help us realize our full commercial potential.”
About GERD
Gastroesophageal reflux disease (GERD) is a common gastrointestinal
disease that affects nearly 20 percent of the U.S. population. It is a
chronic condition in which the gastroesophageal valve (GEV) allows
gastric contents to reflux (wash backwards) into the esophagus, causing
heartburn and possible injury to the esophageal lining. In the United
States (U.S.), GERD is the most common gastrointestinal-related
diagnosis physicians make during clinical visits. Some patients may have
mild or moderate symptoms of GERD, while others have more severe
manifestations causing chronic heartburn, asthma, chronic cough, and
hoarse voice or chest pain. Left untreated, GERD can develop into a
pre-cancerous condition called Barrett’s esophagus, which is a precursor
for esophageal cancer. The first treatment recommendation for patients
with GERD is to make lifestyle changes (e.g., diet, scheduled eating
times and sleeping positions). Proton pump inhibitor (PPI) medications
are commonly used to treat GERD, but there are a variety of health
complications associated with long-term dependency on PPIs, and more
than 10 million Americans are refractory to PPI therapy and may opt for
surgery.
About Transoral Incisionless Fundoplication (TIF®
2.0 procedure) for Reflux
The TIF 2.0 procedure enables an incisionless approach to fundoplication
in which a device is inserted through the mouth, down the esophagus and
into the upper portion of the stomach. This approach offers patients
looking for an alternative to traditional surgery an effective treatment
option to correct the underlying cause of GERD. Based on clinical
studies, most patients stopped using daily medications to control their
symptoms and had their esophageal inflammation (esophagitis) eliminated
up to five years after the TIF 2.0 procedure. Additionally, clinical
results have demonstrated that concomitant laparoscopic hiatal hernia
repair (LHHR) immediately followed by TIF 2.0 procedure is safe and
effective in patients requiring repair of both anatomical defects.
Over 22,000 TIF procedures have been performed worldwide. More than 100
peer-reviewed papers have consistently documented the sustained improved
clinical outcomes and exemplary safety profile the TIF procedure
provides to patients suffering from GERD. For more information, please
visit www.GERDHelp.com.
About Reimbursement
With the support of clinical societies, commercial and federal insurance
providers, representing more than 100 million lives, have recognized the
value of the TIF 2.0 procedure through recently expanded coverage
policies. The TIF 2.0 procedure is a covered benefit for all Medicare
beneficiaries across the country.
For the TIF 2.0 procedure, physicians and hospitals can reference CPT
Code 43210 EGD esophagogastric fundoplasty. CPT is a registered
trademark of the American Medical Association.
About EsophyX® Technology
The EsophyX technology is used to reconstruct the gastroesophageal valve
(GEV) and restore its function as a barrier, preventing stomach acids
from refluxing back into the esophagus. The device is inserted through
the patient’s mouth with direct visual guidance from an endoscope, and
enables creation of a 3 cm, 270° esophagogastric fundoplication. The
U.S. Food and Drug Administration cleared the original EsophyX device in
2007. The evolving technology, including the latest iteration EsophyX
Z+, launched in 2017, enables surgeons and gastroenterologists to use a
wide selection of endoscopes to treat the underlying anatomical cause of
GERD.
Indications
The EsophyX device, with SerosaFuse® fasteners and accessories, is
indicated for use in transoral tissue approximation, full thickness
plication and ligation in the gastrointestinal tract. It is indicated
for the treatment of symptomatic chronic GERD in patients who require
and respond to pharmacological therapy. The device is also indicated to
narrow the gastroesophageal junction and reduce hiatal hernia ≤ 2 cm in
size in patients with symptomatic chronic GERD. Patients with hiatal
hernias larger than 2 cm may be included, when a laparoscopic hiatal
hernia repair reduces the hernia to 2 cm or less.
About EndoGastric Solutions®
Based in Redmond, Washington, EndoGastric Solutions, Inc. (www.endogastricsolutions.com),
is a medical device company developing and commercializing innovative,
evidence-based, incisionless surgical technology for the treatment of
GERD. EGS has combined the most advanced concepts in gastroenterology
and surgery to develop products and procedures to treat gastrointestinal
diseases, including the TIF 2.0 procedure—a minimally invasive solution
that addresses a significant unmet clinical need. Join the conversation
on Twitter: @GERDHelp,
Facebook: GERDHelp,
EndoGastricSolutions
and LinkedIn: EndoGastricSolutions.
About Accelmed
Accelmed is a U.S./Israel-based investment firm focused on value
creation for medical device companies and technologies. It was founded
in 2009 by Dr. Uri Geiger and Mori Arkin and invests in small and
mid-cap private and public companies. With its proven track record and
large team of accomplished investment professionals, Accelmed’s vision
is to create leading med-tech players by merging commercial platforms
with small innovative growth companies, predominantly from Israel. For
more information, refer to www.accelmed.com.
Contacts
Debbie Donovan
EndoGastric Solutions, Inc.
Phone: +1
408-621-0216
[email protected]
Erich Sandoval
Lazar Partners
Phone: +1 917-497-2867
[email protected]
