Investors have backed a company making disposable devices for minimally invasive gastroenterology procedures with a new $3 million in capital, according to a U.S. Securities and Exchange Commission filing.
SafeStitch Medical’s (OTCBB:SFES) private placement came from 17 investors, according to the filing. A company representative did not reply to a request for details, but it appears the capital will be used to continue developing a device and procedure that goes through the mouth to correct acid reflux and cause weight loss in obese patients.
SafeStitch currently markets the AMID Hernia Fixation Device, designed for use by surgeons in hernia repair procedures. The device uses the Lichtenstein method to implant mesh using less-surgical wound retraction than manual suturing, so it’s potentially quicker and less painful, according to the company. Postsurgical pain is a common problem with hernia repair procedures.
The U.S. Food and Drug Administration cleared the device in 2009, and SafeStitch launched it in the U.S. the following summer. Adoption has apparently been slow, though. In the fall of last year, the company said it had shipped the device to “over half a dozen” medical facilities. Covidien is a competitor within the space.
Publicly traded SafeStitch was founded in 2005 in Miami to develop a minimally invasive obesity procedure, but later expanded to develop numerous devices for use in GI procedures.
[Screen cap from SafeStitch Medical]