CSA Medical, Inc., Is Set to Put the Freeze on Thoracic Disease

BALTIMORE, Sept. 8 /PRNewswire/ — A new medtech spin-off from CSA Medical, Inc., is about to give cancer patients and their caregivers a reason to breathe more easily. Literally.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080721/NEM114LOGO )

In July, Reset Medical, Inc., secured $8.6 million in investments and is now poised to distribute CSA Medical, Inc.’s endoscopic cryospray ablation (CSA) tool for use worldwide in the treatment of cancers and other diseases of the chest, lungs, and airway. Additional products, customized for various thoracic diseases, are now under development.

CSA Medical’s CryoSpray Ablation(TM) System, which has been cleared by the FDA, is a safe, simple, and effective treatment that delivers a low-pressure, non-contact spray of liquid nitrogen using a standard endoscope for destroying unwanted tissues. The CSA System has been successful in treating esophageal cancer and Barrett’s esophagus, a pre-cancerous disease caused by chronic acid reflux, in nearly 50 major U.S. healthcare institutions and comprehensive cancer centers.

William Krimsky, MD, an interventional pulmonologist and intensivist at Franklin Square Hospital in Baltimore, first had the vision to use the CSA technology for airway and thoracic diseases. In 2006 he contacted company CEO Timothy Askew to see if he would consider using the device to fight malignancies in the lungs and chest.

“You could build an entire practice around this device,” says Dr. Krimsky, who now serves on the Scientific Advisory Board for Reset Medical.

Although skeptical of the idea at first, Askew says he eventually decided to “take a step out of my comfort zone.” He authorized $200,000 to fund animal tests, and initiated a company-sponsored human clinical trial with Dr. Krimsky at Franklin Square to demonstrate safety and tissue response when using the CSA system in the airway.

“This is a unique device, serving a huge global market, from patients with lung cancer to severe asthma, pleural disease, etc.,” says Dr. Krimsky. “Patients have few good alternatives for treatment, and none as clinically affordable, safe, effective, and tolerable.”

According to national healthcare statistics, more people die of lung cancer than any other type of cancer. In addition, the technology shows great promise for other chest and airway diseases. As a result, company officials estimate that the treatment market for Reset Medical is substantial. Not surprising, convincing the existing investors to participate in another round of funding was not terribly difficult. In fact, more than half of CSA Medical’s 66 stockholders contributed.

“When investors saw the size of the markets and the level of unmet medical need, matched with the potential of this breakthrough technology, it became a very competitive environment for participation,” says Steve Schaefer, CFO and Board Member. “We capped the Series A round at $8.6 million and did not permit participation from venture firms.”

Out of the proceeds from the financing, Reset Medical was able to purchase a license and certain assets from CSA Medical. Reset is using the remaining capital to advance the science of cryotherapy through further clinical studies in the airway and chest and to further product development. The Company has begun selectively distributing the CSA System to thoracic surgeons and critical-care pulmonologists who are cooperating in this advanced research and treating patients in great need.

There are three new clinical trials underway to investigate the technology as a treatment for a range of ailments, including malignant and benign obstructive airway disease and pleural disease. Other studies being planned will include chronic bronchitis, emphysema, and asthma.

About CSA Medical, Inc.

CSA Medical, Inc is the manufacturer of the CryoSpray Ablation(TM) System. The CSA System utilizes a patented technology that regulates and transports a low-pressure cryogen through the CSA Catheter, an open-tipped catheter that is easily passed through a standard endoscope. This rapid delivery system of repetitive freeze-thaw cycles has been shown to be a safe and effective treatment for destroying unwanted tissues.

About Reset Medical

Reset Medical, Inc., is committed to bringing the proven science of cryotherapy to endoscopic treatments in the chest and airways. The CSA System allows therapeutic endoscopists to have the ability to quickly and easily ablate unwanted tissue. The CSA System utilizes a patented, FDA-cleared technology that regulates and transports a low-pressure cryogen through an endoscope. Reset Medical, privately held and headquartered in Baltimore, Maryland, is the exclusive worldwide distributor of CSA Medical, Inc.’s product line for the thoracic marketplace.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20080721/NEM114LOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, [email protected]

CSA Medical, Inc.

CONTACT: Richard Hughen of CSA Medical, Inc., [email protected]

Web site: http://www.csamedical.com/