Estech Completes $8.5 Million in Equity Financing; Raises $28 Million Over Last Two Years
SAN RAMON, Calif., Dec. 7, 2010 /PRNewswire/ — Estech announced today that it has completed $8.5 million in equity financing to pursue further development of its minimally invasive cardiac ablation surgical platform. Investors participating in the financing include Saints Capital Everest, Telegraph Hill Partners, NBGI Ventures and Tullis Health Investors. Over the last two years, Estech has raised over $28 million in equity financing to fund its innovation and business development strategies.
Estech’s minimally invasive endoscopic catheter is the only surgical cardiac ablation device on the market that is truly minimally invasive and easy to use. To date, over 2500 ablation procedures have been performed worldwide with the Estech surgical catheter, both in stand-alone and hybrid procedures involving a surgeon and an electrophysiologist (EP). The device has been approved to treat atrial fibrillation in Europe under CE mark and has FDA 510(k) clearance for cardiac ablation in the U.S.
The market potential for a truly minimally invasive, closed chest, reproducible ablation procedure to treat permanent and persistent atrial fibrillation, the most common type of abnormal heart rhythm, is estimated at over $2 billion worldwide. “Only Estech has the disruptive technology, the earliest and broadest intellectual property, procedural techniques, and clinical experience to address this large – and largely untapped – market opportunity,” said John Pavlidis, Estech’s president and chief executive officer.
The novel Estech catheter is designed to be used endoscopically through three small ports on the right side of the chest. The procedure is typically performed in 60 to 90 minutes, and in some cases has been performed under epidural as opposed to general anesthesia. Other surgical procedures that are sometimes referred to as minimally invasive can, in the case of bilateral thoracotomy, last up to 7 hours, carry higher risk of major complications, and require a longer hospital stay.
“Estech has been making great strides in developing compelling clinical evidence and intellectual property related to its ablation product line, and this additional capital will help the company accelerate those efforts,” said Scott Halsted, managing director of Saints Capital. “The company’s investors are particularly enthusiastic about the ablation opportunity at Estech.”
Estech develops and markets a broad portfolio of innovative medical devices and disposables that enable cardiac surgeons worldwide to perform a variety of traditional surgical or minimally invasive procedures, including the growing trend in hybrid ablation procedures, with maximum ease of use, patient safety and clinical effectiveness. Estech uniquely focuses solely on the cardiac surgeon. The company’s product lines span three cardiac surgery disciplines, including temperature-controlled RF ablation, valve replacement and repair, and coronary artery bypass grafting. Estech markets its products in the U.S. and in more than 40 countries internationally through a direct sales force and a select network of distributors. Estech is privately held and backed by a number of leading life sciences venture capital firms in Silicon Valley and Europe. The company is headquartered in San Ramon, Calif., with a facility in the Netherlands. For more information, please visit http://www.estech.com.
COBRAÃ‚® Surgical System: Disclaimer:
In the U.S., the Estech COBRA Revolution and COBRA Bipolar Inserts have been cleared for ablation of soft tissues. The COBRA Adhere XL, COBRA Cooled and COBRA Surgical probes have been cleared for cardiac ablation. The AFfirm Pacing Probe has been cleared to be used upon completion of the cardiac ablation procedure to assess the adequacy of cardiac lesions created in surgically treating the patient’s arrhythmia. Estech does not promote off-label use of its products and their use is at the discretion of the cardiac surgeon. Estech is undertaking an Investigational Device Exemption (IDE) clinical trial and subsequent Premarket Approval Application (PMA) submission in the US to obtain a specific atrial fibrillation indication. In Europe, the Estech COBRA RF ablation products are CE marked with an indication for the treatment of atrial fibrillation by ablating cardiac tissue during surgery.