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| The EsophyX is inserted transorally to help reconstruct the gastroesophageal valve--courtesy of EndoGastric Solutions |
EndoGastric Solutions reeled in $13 million in additional venture financing that it plans to use to fuel research and development, plus ongoing clinical trials for treatments that address chronic acid reflux.
Gastroesophageal reflux disease is the formal name for the condition that EndoGastric is focused on combating. The EsophyX device is the Redwood City, CA company's initial weapon in the fight. Cleared by the FDA in 2007, the device is inserted transorally, using an endoscope to guide with the visuals. Combined with a procedure known as Transoral Incisionless Fundoplication (TIF), EsophyX helps reconstruct the gastroesophageal valve in order to restore its ability to block acid reflux, a condition that affects 60 million-plus people in the U.S. alone.
Mike Kleine, EndoGastric's president ad CEO, said in a statement that the company has focused over the last year on building additional clinical data to support use of the TIF procedure. The new money, he said, will help fuel ongoing clinical testing and R&D programs. But it will also aid the company's efforts to seek insurance reimbursement for the procedure. In other words, while more than 10,000 people worldwide have been treated with the procedure, Kleine and his team are working hard to convince all aspects of the healthcare system of its merits, and promote greater use. They do so in a system that relies more on dietary changes to treat the condition, or drugs, such as proton pump inhibitors that help damp down production of acid in the body.
The latest funding infusion is an extension of the company's Series F round, which pumped $30 million into the EndoGastric almost two years ago. Existing investors--including Advanced Technology Ventures, Canaan Partners, Chicago Growth Partners, De Novo Ventures, Foundation Medical partners, Oakwood Medical Investors and Radius Ventures--participated in the latest funding.
- read the release