EndoGastric Solutions Secures $14.5M Series I Financing to Advance TIF-Based EsophyX Device for GERD Treatment

On May 29, 2019, VCBeat (WeChat Official Account: vcbeat) learned that EndoGastric Solutions had completed a $14.5 million Series A financing round. The round was led by Accelmed, and as part of the transaction, Dr. Uri Geiger, Co-founder and Managing Partner of Accelmed, will join the Board of Directors of EndoGastric Solutions.

EndoGastric Solutions has completed a total of 20 financing rounds. In December 2015, the company raised $50 million. In July 2018, EndoGastric Solutions secured a $30.5 million Series I financing round led by Advanced Technology Ventures, bringing the total amount raised in its Series I round to $45 million.

EndoGastric Solutions, established in 2003, is a medical device company headquartered in Redmond, Washington. The company developed EsophyX, a surgical device based on TIF (Transoral Incisionless Fundoplication) technology, for the treatment of gastroesophageal reflux disease (GERD).

Gastroesophageal Reflux Disease (GERD) is a common gastrointestinal disorder affecting nearly 20% of the U.S. population. This condition causes stomach contents to reflux into the esophagus, resulting in heartburn and esophageal damage. Proton pump inhibitors (PPIs) are commonly used to treat GERD; however, long-term reliance on PPIs can lead to various health complications. Consequently, more than 10 million Americans find PPI therapy intolerable and opt for surgical intervention instead.

TIF is an incisionless fundoplication procedure. Similar to the positioning for standard endoscopy, the patient is placed in the left lateral decubitus position. A diagnostic endoscopy is performed first, followed by transoral insertion of the EsophyX device into the stomach under direct visualization. The device penetrates the muscularis layer through the apposed esophageal and gastric walls, deploys H-shaped fasteners, and creates a fold 2–3 cm above the esophagogastric junction (EGJ). Subsequently, the device is rotated to create a 270° fundoplication; suctioning intragastric air during the procedure helps tighten the tissue. Upon completion, endoscopic evaluation is conducted to ensure adequate fundoplication and to confirm the absence of perforation or bleeding.

EsophyX is a device that enables transoral incisionless fundoplication. It consists of a control handle, a reversible mold former located at the distal end of the device, an endoscope-compatible tubular reducer, a helical tissue anchor, a needle, and a fastener.

Dr. Geiger, Co-Founder and Managing Partner of Accelmed, stated, “TIF 2.0 offers an effective and durable solution for patients with gastroesophageal reflux disease (GERD). Given the growing market demand for minimally invasive treatment options, we believe EndoGastric Solutions is well-positioned to capture a significant share of the market.”

“With the completion of this financing round, we have established a strong financial foundation that will enable rapid growth for our products,” said Skip Baldino, President and CEO of EndoGastric Solutions.

Accelmed, founded by Dr. Uri Geiger and Mori Arkin in 2009, is an investment firm focused on investing in medical device and technology development companies. The company has offices in the United States and Israel.

(Compiled by Song Chenchen)