EndoGastric snags another $30M on the quest for reimbursement

San Mateo, CA's EndoGastric Solutions has wrapped up a rarely seen Series G financing round, banking $30 million to help expand the adoption of its device for gastroesophageal reflux disease.

Repeat backers including Advanced Technology Ventures, Canaan Partners and Foundation Medical Partners took part in the latest round, lining the company's pockets as it works through trials designed to affirm the efficacy of EsophyX, its FDA-cleared GERD device.

The nonsurgical technology is inserted via endoscope in a procedure called transoral incisionless fundoplication, reconstructing the gastroesophageal valve and barring reflux. About 15,000 patients have been treated with EsophyX since its launch, according to the company, and EndoGastric has embarked on a fleet of studies with hopes of locking down reimbursement and boosting the device's use.

In the latest 12-month follow-up data, 77% of patients treated with EsophyX reported a complete elimination of symptoms, compared to just 5% of those taking a maximum dose of acid-fighting proton-pump inhibitors, the company said. EndoGastric believes those results help to prove EsophyX is an ideal option for patients who no longer respond to drug therapy but aren't prepared for major surgery and its attendant risks, and now the company has to convince the gatekeepers of reimbursement.

"This is a pivotal time in the company's evolution," said Michael Carusi, EndoGastric board member and general partner at Advanced Technology Ventures, in a statement. "The current management team is focused on a commercialization strategy that is balanced between investments in ongoing product development, clinical data, healthcare economics and supporting trained physicians."

The company is moving on with its reimbursement push after agreeing in February to pay $5.3 million and settle federal allegations that it encouraged providers to submit claims for EsophyX procedures with incorrect billing codes. Admitting no wrongdoing, the company said it had already taken corrective actions to prevent any further problems.

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